Former Defense Secretary Jim Mattis on Monday said the United States would effectively cede control of the Strait of Hormuz if it ended the war with Iran at this point.
The waterway is vital to global shipping, particularly the energy market, and has been a focal point of Iran and U.S. forces as Tehran has blocked the strait since the United States and Israel launched coordinated strikes against Iranian targets last month.
"Iran right now, if we declared victory, they would now say they own the strait," Mattis said on Monday during CERAWeek in Houston. "You’d see a tax for every ship that goes through."
"We're in a tough spot, ladies and gentlemen. I can’t identify a lot of options," he added.
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The remarks came as President Donald Trump declared a five-day pause on military strikes against Iran's energy infrastructure.
In response to attacks, Iran has effectively closed the strait, a narrow passage where 20% of the world's oil moves through.
Fox News Digital has reached out to the White House.
Despite the pause, it remains doubtful that either side will find a compromise, said Mattis.
"Neither side has the ability right now to move the other side off of where they’re at," Mattis said. "Never in history has air power alone changed a regime."
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The Iranian regime is charging some tankers $2 million to pass through the strait.
"Collecting $2 million as transit fees from some vessels crossing the strait reflects Iran’s strength," Iranian lawmaker Alaeddin Boroujerdi told state broadcaster Islamic Republic of Iran Broadcasting (IRIB) on Sunday.
On Saturday, Trump warned that the U.S. could target Iran's power infrastructure if the strait is not reopened within 48 hours.
"If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 hours from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!" Trump said in a post shared on Truth Social.
Iranian President Masoud Pezeshkian made his position clear on X, saying the waterway was open to everyone, except Iran's adversaries.
"The Strait of Hormuz is open to all except those who violate our soil," he wrote. "We firmly confront delirious threats on the battlefield."
Fox News Digital's Emma Bussey contributed to this report.
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