India, April 10 -- The European Union declared Thursday that freedom of navigation through the Strait of Hormuz must be guaranteed without any tolls or payments, directly challenging Iran's emerging plans to monetize the strategic waterway. "International law provides for the freedom of navigation, which means basically no payment or toll whatsoever," European Commission spokesman Anouar El Anouni told a press conference in Brussels, calling free passage a "public good."

The statement came as Iran, which agreed to reopen the strait during a fragile two-week ceasefire with the US and Israel, has floated the idea of implementing a toll system-seemingly to fund reconstruction after weeks of devastating US-Israeli strikes. President Donald T...