Sen. Tom Cotton (R., Ark.) is urging Treasury Secretary Scott Bessent to sanction any country or entity enabling or facilitating Iran's new Strait of Hormuz toll system, including Oman, a major U.S. ally involved in helping Iran establish it.

Sanctions Push Targets Iran-Backed Strait Authority

In a letter to Bessent obtained by the Washington Free Beacon, Cotton called for immediate sanctions on the Persian Gulf Strait Authority (PGSA), its officers, and any foreign entity that pays, processes, or facilitates toll payments. He added that Congress "stands ready to support any actions that further this mission."

According to the report, Cotton, the first lawmaker to float legislation targeting the PGSA, warned that recognizing the authority violates freedom of navigation. "Every dollar collected directly finances a sanctioned terrorist entity," he wrote.

The Department of the Treasury did not immediately respond to MarketDash's request for comment.

Iran formally established the PGSA recently. Under the framework, commercial vessels must fully coordinate with the PGSA, disclose ownership details, cargo and crew manifests, and pay Tehran up to $2 million per ship for safe passage. The PGSA operates directly under the Islamic Revolutionary Guard Corps.

On Monday, the PGSA launched an official X account, declaring unauthorized vessel transit through the strait illegal and announcing it had begun operations.

Rejection of Tehran's Hormuz Toll System

The Trump administration has continuously objected to Iran's efforts to impose shipping tolls through the Strait of Hormuz even after the conflict ends. President Donald Trump called the strait "international," rejecting tolls outright.

The toll dispute has compounded already heightened U.S.-Iran tensions. Iran's supreme leader has also reportedly directed that the country's enriched uranium stockpile must not be sent abroad, with Washington reportedly preparing fresh military strikes as nuclear talks remain deadlocked.