US President Donald Trump has said Iran has assured Washington that commercial vessels passing through the Strait of Hormuz will not face tolls, transit fees or additional charges, a statement aimed at easing concerns over one of the world's most critical energy and shipping routes.

The announcement comes amid heightened attention on the Strait of Hormuz, the narrow waterway connecting the Persian Gulf to global markets and carrying a substantial share of international oil shipments. Any threat of restrictions in the passage has the potential to trigger volatility in energy prices and global trade.

In a post on Truth Social, Trump said Iran had conveyed that there would be "NO TOLLS, NO INSURANCE COSTS, & NO OTHER CHARGES OF ANY KIND BEING SOUGHT OR RECEIVED BY IRAN ON SHIPS TRAVELING THE STRAIT OF HORMUZ." He also issued a warning, saying any deviation from that assurance would have immediate consequences for ongoing diplomatic engagement.

Alongside the Hormuz announcement, Trump addressed questions surrounding billions of dollars in Iranian assets frozen under US control. Rejecting suggestions that Washington was preparing to hand over unrestricted cash to Tehran, he outlined a proposal under which any released funds would be tightly monitored and used exclusively for humanitarian purchases.

According to Trump, the money would be directed towards the purchase of American agricultural products, including corn, wheat and soybeans, for civilian use in Iran. He argued that the arrangement would support US farmers while ensuring that essential goods reach ordinary Iranians.

The administration's proposed framework would place strict controls on how the funds are used. US Vice President JD Vance, speaking after discussions in Switzerland, said any future release of Iranian assets would be subject to a multi-layered oversight mechanism designed to prevent misuse.

Under the proposed system, the United States and Qatar would jointly supervise transactions, with approvals required before funds could be accessed. The objective, according to administration officials, is to ensure that money is spent solely on humanitarian imports and cannot be diverted towards military activities or groups backed by Tehran.

With ANI inputs