Iran Charges $2 Million Per Vessel to Cross Strait of Hormuz as Trump Issues 8 p.m. Tuesday Deadline: WTI at $112, Brent at $110

Iran has begun charging commercial vessels up to $2 million per voyage to transit the Strait of Hormuz, the Islamic Revolutionary Guard Corps-controlled toll regime marking the first time in modern maritime history that any nation has imposed unilateral transit fees on an internationally recognized strait. The move comes as U.S. President Donald Trump issued a deadline of 8 p.m. Eastern Time on Tuesday, April 7, for Iran to fully reopen the strait or face U.S. military strikes on Iranian power plants and bridges.

Oil markets opened the week sharply higher on the developments. WTI crude for May delivery settled at $112.41 per barrel, while international benchmark Brent crude closed at $109.77 per barrel. Western Canadian Select (WCS) heavy crude was trading near $97 per barrel, with the WCS differential widening to $16.15 per barrel below WTI as Trans Mountain Pipeline approached full capacity for April, constraining additional egress from Alberta.

Iran's $2 Million Per Vessel Toll Regime

Iran's parliamentary Security Commission approved the toll plan in late March 2026, with an Iranian lawmaker confirming the fee structure on state television. Under the scheme, commercial tankers and LNG carriers seeking passage through Iranian-controlled waters within the Strait of Hormuz must pay up to $2 million per voyage to the IRGC. At that rate, revenues from oil tankers alone could reach approximately $20 million per day, or $600 million per month, with LNG carriers potentially pushing the total above $800 million per month.

The strait normally handles approximately 20 million barrels of oil per day, representing roughly 20 percent of global crude supply, as well as about 20 percent of worldwide liquefied natural gas trade. The partial closure and associated toll regime since late February 2026 have contributed significantly to the surge in global energy prices. Brent surpassed $100 per barrel on March 8, 2026 for the first time since 2022, and has climbed further since.

For background on how the supply disruption escalated to its current severity, see our earlier coverage: OPEC+ Meets April 5 to Assess the Largest Oil Supply Crisis in History as Brent Tops $107.

Trump's Tuesday Deadline and Iran's Response

President Trump's 8 p.m. ET deadline on April 7 follows a series of escalating ultimatums. Trump has threatened to strike Iranian power generation and transportation infrastructure if the strait is not fully reopened by that time. The administration stated that Iran's partial tolerance of some tanker traffic is insufficient, and that full commercial resumption is required to avoid military action.

Iran rejected a U.S. ceasefire proposal over the weekend, with Tehran instead issuing a set of conditions that included a permanent end to hostilities across the region, a formal safe passage protocol for the strait under joint Iranian-Omani supervision, reconstruction commitments, and comprehensive sanctions relief. Iran's foreign ministry called any temporary ceasefire arrangement inadequate.

The standoff has introduced substantial geopolitical risk premium into overnight oil trading. Analysts at multiple banks have reiterated near-term price targets of $115 to $130 per barrel for Brent if military escalation occurs, while a negotiated resolution could rapidly deflate prices by $15 to $25 per barrel.

Impact on Canadian Oil Producers

The elevated crude price environment is broadly favorable for Canadian oil producers, despite the widening WCS discount. Because oil is priced and sold in U.S. dollars while the majority of production costs are denominated in Canadian dollars, the combination of high USD oil prices and a relatively weaker Canadian dollar amplifies per-barrel revenue for Alberta producers.

Canada's total oil production reached a record 4.2 million barrels per day in the first two months of 2026, up 3.3 percent year over year. Trans Mountain Pipeline is operating at near-full utilization after completing its expansion to the Westridge Marine Terminal in Burnaby, British Columbia. The pipeline's tidewater access means Canadian crude can now reach Asian buyers directly, providing some insulation from pipeline congestion that previously forced all Alberta exports through U.S. Gulf Coast refineries. For more on Trans Mountain's full capacity run and its implications for Canadian producers, see our report: Suncor Plans 100,000 bpd Production Growth as Trans Mountain Hits Full Capacity.

LNG Canada's Phase 1 exports from Kitimat, British Columbia are also benefiting from the Hormuz-driven LNG price surge in Asian spot markets. European and Asian LNG buyers cut off from Middle East supply through the strait have been seeking additional Pacific Basin cargoes, supporting LNG Canada's offtake partners. Read more on how LNG Canada's Phase 2 is tracking: LNG Canada 2026 Exports and Train 2 Full Output Amid Hormuz Disruption.

What to Watch

• The 8 p.m. ET deadline on April 7: Any military action by the U.S. against Iranian infrastructure would be the most significant escalation yet and would likely push WTI and Brent sharply higher overnight.
• Iran's ceasefire conditions: If Tehran's demands for a permanent settlement gain diplomatic traction, markets could see a rapid price correction.
• WCS differential: Watch whether Trans Mountain throughput constraints ease through April, as any widening of the $16.15 discount would compress netbacks for Alberta heavy oil producers.
• OPEC+ May decision: The alliance met April 5 to assess whether to proceed with its next planned production increase. A delay would tighten an already-stressed market further.

As of this writing, WTI is at $112.41, Brent at $109.77, and WCS at approximately $97 per barrel. Markets remain highly sensitive to any statement from Tehran or Washington ahead of the evening deadline.