Sen. Tom Cotton (R., Ark.) is pressing the Trump administration to immediately sanction any country or entity helping Iran establish a “toll booth” in the Strait of Hormuz — a scheme that could net the hardline regime as much as $2 million per vessel transiting one of the world’s most critical maritime corridors. The senator simultaneously announced he is crafting new legislation to aid the administration’s efforts to halt the plan, according to a copy of Cotton’s request obtained by the Washington Free Beacon.

The letter, sent Thursday to Treasury Secretary Scott Bessent, is a direct response to Iran’s efforts — reportedly coordinated with Oman, a major U.S. ally — to create a “permanent Hormuz toll system.” Those efforts have already drawn a sharp rebuke from the Trump administration, which has warned that any Iranian-controlled toll scheme would undermine ongoing nuclear ceasefire negotiations.

On Thursday, Iran formally established the Persian Gulf Strait Authority (PGSA), declaring it has “defined the boundaries of the Strait of Hormuz management supervision area,” which extends from the Strait into the Gulf of Oman. Under the framework, commercial vessels would be required to apply to the PGSA, disclose their ownership, insurance, crew manifests, and cargo — and then pay up to $2 million per ship to guarantee safe passage.

Cotton’s letter to Bessent lays out an urgent case for immediate sanctions action, arguing that the PGSA operates directly under the Islamic Revolutionary Guard Corps (IRGC) — a designated Foreign Terrorist Organization — meaning every dollar collected would directly finance a sanctioned terrorist entity.

Fresh sanctions on the PGSA’s leadership and financial partners, Cotton argues, could dismantle the organization before it begins systematically harassing commercial ships and extracting payments. He is the first lawmaker to propose specific legislative action targeting the PGSA directly, and such a bill is expected to garner widespread Republican support — and likely the backing of the Trump administration.

Both President Donald Trump and Secretary of State Marco Rubio moved quickly Thursday to reject the PGSA’s creation and signal American opposition to any Hormuz toll scheme.

Rubio noted the U.N. Security Council resolution — sponsored by Bahrain and bearing what he described as “the highest number of cosponsors in the history of the Security Council” — has drawn the backing of China, typically considered an Iranian ally, and numerous Arab nations. That breadth of support underscores the alarm the PGSA has already triggered across the international community.

Cotton’s letter explicitly positions Congress as a willing partner in whatever action the executive branch chooses to take, while making clear that legislation is coming regardless. The combination of executive sanctions authority and congressional action could present Iran with a coordinated pressure campaign rarely seen in modern U.S. foreign policy.

The PGSA’s reach — extending through the Strait and into the Gulf of Oman — also creates direct tension with Oman, which has historically played a backchannel diplomatic role between Washington and Tehran. Whether Muscat’s reported cooperation with Iran’s toll scheme survives American diplomatic and economic pressure remains one of the critical questions now facing the region.

For now, the Trump administration, Cotton, and a growing coalition of nations at the United Nations are sending a unified message to Tehran: the Strait of Hormuz is not for sale.

Source: Washington Free Beacon. Faith & Freedom News reporting based on publicly available letter and official statements.