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President Trump has threatened to impose tolls on the Strait of Hormuz as his newly signed deal with Iran shows early signs of strain.

Getting into it: The friction erupted Saturday when Iran’s military command said it had again closed the strait, citing a “clear breach” of the ceasefire memorandum over continued Israeli strikes in Lebanon. US Central Command flatly denied it, insisting “Iran does not control the Strait of Hormuz” and that traffic keeps flowing, with the military saying 55 ships carrying more than 17 million barrels of oil transited that day.

In response, Trump said “There will be NO TOLLS in the Hormuz Strait for 60 days during the Cease Fire Period, and there will be NO TOLLS after the 60 day period has expired, unless they are imposed by and for the United States of America, should the deal not be completed, for services rendered as the Guardian Angel to the countries of the Middle East for purposes of both past, present, and future reimbursement of costs.”

The dispute exposes a gap in the deal, which locks in free passage for just 60 days and says nothing about whether fees can come later. Iran has refused to rule out charging tolls, calling it a question of sovereignty, while a US official countered that the required sign-off from Gulf states would leave Tehran with no way to do it.

Charging tolls in the strait would be a major new source of cash flow to the Iranian government as the strait of hormuz carries about 20% of the worlds oil through it. Some estimates believe that Iran could generate $80 – $350 billion a year by charging tolls in the strait of hormuz.

The strain set a rough tone as US and Iranian negotiators arrived in Switzerland for implementation talks beginning Sunday, led by Vice President JD Vance and Iran’s parliament speaker Mohammad Bagher Ghalibaf, with Pakistan and Qatar mediating.

The US is reportedly seeking to secure IAEA inspector access to Iran’s nuclear sites in exchange for unfreezing billions in Iranian assets, though a Tehran spokesman warned the entire memorandum “will be jeopardized” if commitments aren’t upheld.