In a surprising move, Iran is reportedly seeking to charge a hefty $1 million toll from each ship navigating the Strait of Hormuz over the next two weeks. This development comes amid unfolding negotiations between the United States and Iran aimed at reaching a peace agreement, according to regional officials.

President Donald Trump announced that Iran has consented to a temporary ceasefire and will reopen the strategically vital waterway for this period. During this time, a comprehensive ten-point peace proposal is under review by both nations.

The specifics of the peace proposal remain undisclosed. However, in a conversation with Sky News, President Trump expressed optimism, stating, “They are very good points – and most of them have been fully negotiated. If it isn’t good, we’ll go right back to it very easily.”

In contrast, an anonymous regional official revealed to the Associated Press that Iran’s plan includes imposing high tolls on vessels traversing the Strait during this two-week window.

Among the points outlined in the peace plan is a call for the U.S. to acknowledge Iran’s jurisdiction over the Strait, its entitlement to uranium enrichment, the lifting of all sanctions, compensation payments, and a full withdrawal of U.S. troops from the area.

Iran intends to channel the revenue from these tolls into rebuilding efforts after the recent prolonged conflict.

On Tuesday, Trump described the deal as ‘total and complete victory.’ 

It comes after claims that Iran’s Supreme Leader Mojtaba Khamenei had instructed his negotiators to move towards a deal, according to Axios.

Three sources with knowledge of the matter told the news outlet that by Monday night, mediators had US approval for an updated proposal for the ceasefire before Khamenei, who was actively involved in the decision-making process, gave his blessing for his negotiators to cut a deal.

‘Without his green light, there wouldn’t have been a deal,’ one of the sources said. 

An unnamed regional official told the Associated Press that Iran wants to charge tolls of up to $1million on ships that pass through the Strait during the two-week period 

US President Donald Trump announced last night that Iran has agreed to a two-week ceasefire and will reopen the crucial waterway, after Tehran submitted a ten-point peace plan to end the war

Iranians burn U.S. and Israeli flags during a demonstration following the announcement of a two-week ceasefire at Enghelab Square in Tehran

In a Truth Social post just past midnight, Trump said the US would be ‘helping with the traffic buildup in the Strait of Hormuz,’ adding: ‘Big money will be made.’

Iran’s foreign minister, Abbas Araghchi, said that if attacks against Iran stop, Iranian operations will cease as well.

The country’s military will coordinate safe passage through the Strait of Hormuz during the ceasefire, he added in a post on X.

The US and Iran will now engage in negotiations over the next two weeks, buying some time to try to reach a permanent settlement. 

It is unlikely to be smooth sailing, but in after-hours trading, the price of a barrel of oil dropped below the $100 mark for the first time in days, and US stock futures soared.      

Following the confirmation of the deal, the US President hailed ‘a big day for world peace’ after agreeing to pause the attacks.

Iran has ‘had enough’ of the conflict, the US president said on Truth Social, and there will now be ‘lots of positive action’. 

Israel has also agreed to halt attacks on Iran for two weeks, a senior White House official told Axios, with the ceasefire taking effect once the Strait of Hormuz is reopened. 

Iran accepted the Pakistan-brokered deal after a last-minute Chinese intervention urged Tehran to show flexibility over the war’s economic fallout, three Iranian officials told the New York Times. 

However, the ceasefire deal has also received heavy criticism with US representative Maxwell Frost saying of the deal: ‘A last-minute ceasefire doesn’t erase President Trump’s reckless decisions that got us here. 

‘We should’ve never been in this illegal war. Trump is a dangerous warmonger who pushed us into this crisis and threatened to commit war crimes.’ 

Victor LaGroon, a former US Army intelligence analyst and national security expert, echoed these concerns, telling theGrio that details remain unclear regarding Iran’s 10-point plan and ‘what the U.S. achieved in this agreement.’

Iranians burn U.S. and Israeli flags during a demonstration following the announcement of a two-week ceasefire

‘I, like every American, believe that peace is a good thing, but, given the number of times this administration has moved the goal post of what success looks like, I fear this war will continue to cost us billions of dollars and possibly American lives,’ said LaGroon.

US crude oil prices plunged after Trump’s announcement, with West Texas Intermediate contracts falling by more than 15 percent to $95 per barrel after hitting $116 earlier Tuesday. 

Trump had warned Tuesday morning that ‘a whole civilization will die tonight, never to be brought back again’ if no deal was reached by his 8pm ET deadline. 

UK Prime Minister Keir Starmer is also heading to the Middle East this morning, where he will meet with RAF crews protecting allied airspace, before addressing troops. 

In the first comments on the deal, Sir Keir Starmer said: ‘I welcome the ceasefire agreement reached overnight, which will bring a moment of relief to the region and the world.

‘Together with our partners, we must do all we can to support and sustain this ceasefire, turn it into a lasting agreement and reopen the Strait of Hormuz.’

He will be holding bilateral meetings with ‘Gulf partners’ and ‘regional leaders’ today – although Downing Street is yet to say who exactly he’ll be meeting.

Number 10 has said these will focus on ‘practical efforts to restore freedom of navigation in the Strait of Hormuz’.

Trump said that the 10-point proposal ‘is a workable basis on which to negotiate,’ despite saying on Monday that the deal was not ‘good enough.’ 

Donald Trump announced last night that Iran has agreed to a two-week ceasefire and will reopen the Strait of Hormuz, after Tehran submitted a ten-point peace plan to end the war

Iran and the USA agreed to the two-week truce to halt military operations and keep the Strait of Hormuz open for oil and gas shipments, with formal peace talks set to begin in Islamabad on 10 April

Iranians burn U.S. and Israeli flags on Wednesday, April 8, 2026

Video on Tuesday showed women and children waving flags as chanting blared on a loudspeaker at a power plant after Trump threatened to bomb infrastructure

An explosion erupts following strikes near Azadi Tower close to Mehrabad International Airport in Tehran on March 7 

Vice President JD Vance, along with Trump’s son-in-law Jared Kushner and Special Envoy Steve Witkoff, have been leading US negotiations to end the war, which was launched on February 28 – dubbed Operation Epic Fury.

The deal came after Pakistani PM Sharif posted on X that major breakthroughs had been made between US and Iranian negotiators. 

White House Press Secretary Karoline Leavitt said: ‘There are discussions about face-to-face meetings between the United States and Iran, but nothing is final until it is announced by the President or the White House.’ 

Following the reaching of the deal, Israel’s main opposition leader, Yair Lapid, sharply criticised the move, accusing Prime Minister Benjamin Netanyahu of failing to achieve the war’s objectives.

‘There has never been a political disaster like this in our entire history. Israel was not even close to the table when decisions were made concerning the core of our national security,’ Lapid wrote on X.

‘The army carried out everything that was asked of it, and the public showed remarkable resilience, but Netanyahu failed politically, failed strategically, and did not achieve any of the goals he himself set.’

Iran proposed the 10-point counter-proposal to US negotiators via Pakistani officials on Monday after the US gave Islamabad a 15-point proposal to begin a ceasefire. 

The President refused to comment on the 10-point plan earlier on Tuesday, telling Fox News: ‘I can’t comment, because right now we’re in heated negotiations.’ 

Trump said on Monday at a White House press conference that the plan was a ‘significant step,’ but he added that it is ‘not good enough.’ 

Iranians burn U.S. and Israeli flags during a demonstration following the announcement of a two-week ceasefire at Enghelab Square in Tehran

Celebrations erupted on Wednesday in Tehran following the two-week ceasefire deal

A man holds a photo of Iran’s late Supreme Leader, Ayatollah Ali Khamenei, while the flags of the U.S. and Israel are burnt, as people gather after a two-week ceasefire in the Iran war was announced, in Tehran

Sharif had called on both Trump and the Iranian regime to accept the two-week ceasefire before the President finally relented. 

‘To allow diplomacy to run its course, I earnestly request President Trump to extend the deadline for two weeks. Pakistan, in all sincerity, requests the Iranian brothers to open Strait of Hormuz for a corresponding period of two weeks as a goodwill gesture,’ Sharif said on Tuesday afternoon. 

‘We also urge all warring parties to observe a ceasefire everywhere for two weeks to allow diplomacy to achieve conclusive termination of war, in the interest of long-term peace and stability in the region.’

Even before the deadline expired, airstrikes had already hit two bridges and a train station. American forces also struck military infrastructure on Kharg Island for the second time, a key hub for Iranian oil production.

Israel’s military warned of an increased risk of inbound attacks as Trump’s deadline approached.

Before the announcement, blasts were heard in the Qatari capital Doha, while the UAE said its air defenses were responding to missile threats.