Iran is pressing ahead with plans to impose tolls on ships passing through the Strait of Hormuz, according to multiple foreign media reports. As the United States has labeled the move illegal and unacceptable, analysts say the issue could emerge as a key point of contention in face-to-face ceasefire negotiations between the two countries.
The New York Times, CNBC and other outlets reported on Tuesday that Iran is pursuing a plan to formally establish a "tollgate" on the Strait of Hormuz, which it currently blocks through military threat, and collect passage fees from transiting vessels.
Iran currently allows only select ships from friendly nations such as China and India to pass through the strait. Iran has reportedly collected tolls of approximately $2 million per vessel from some ships, paid in Chinese yuan. The new push aims to institutionalize the practice and collect official tolls from all ships transiting the strait.
Semi-state-run Fars News Agency and Tasnim News, among other local outlets, reported that a bill submitted to the Iranian parliament would require ships passing through the strait to pay tolls. The outlets said Iranian lawmakers seek to strengthen sovereignty, control and oversight through the measure. Iran's parliament is refining a draft bill to levy such tolls in exchange for providing security to ships passing through the Strait of Hormuz, with a final version expected next week, the reports said.
Tasnim News cited the example of imposing a "special security service" fee of approximately $2 million per vessel, estimating this would generate more than $100 billion (approximately 150 trillion won) in annual revenue. Roughly 120 ships pass through the Strait of Hormuz each day.
Iran has demanded that the United States recognize its right to collect tolls on the Strait of Hormuz. A senior Iranian political and security official recently presented five official conditions for ending the war through state-run Press TV. These included "Iran's legitimate exercise of sovereignty over the Strait of Hormuz and guarantees thereof." As the Iranian parliament rushes to introduce a toll collection framework, observers say "legitimate exercise of sovereignty" effectively means recognition of Iran's right to collect tolls.
However, critics point out that Iran's claims lack a basis in international law. The NYT reported that the Strait of Hormuz "is less than 30 miles wide at its narrowest point, placing it within the territorial waters of Iran and Oman, but under international law it is considered an international waterway where ship passage is guaranteed." Karen Young, a senior fellow at Columbia University's Center on Global Energy Policy, told CNBC that establishing a tollgate is "practically impossible." She said, "The Gulf Cooperation Council (GCC) countries would not accept or tolerate such a measure," adding that "allowing passage through individual or bilateral agreements with Iran is neither sustainable in the long term nor acceptable to exporting nations in the region."
Under Articles 26 and 44 of the United Nations Convention on the Law of the Sea (UNCLOS), transit passage rights are guaranteed for all ships in straits used for international navigation. Even within territorial waters, tolls cannot be levied for passage itself; charges may only be imposed for specific services provided to foreign vessels. However, neither Iran, the United States nor Israel is a party to the convention.
The United States has expressed opposition to Iran's moves. Washington had previously included in its 15-point ceasefire proposal to Iran a requirement that Iran lift the Hormuz blockade and guarantee free passage. Iran rejected the 15-point proposal.
U.S. Secretary of State Marco Rubio, meeting reporters in Paris on Tuesday, cited the possibility of Iran introducing a toll collection system on the Strait of Hormuz as an urgent concern. "This is not only illegal but unacceptable and dangerous to the entire world," Rubio said.
The Strait of Hormuz remains blocked. Iran's Islamic Revolutionary Guard Corps (IRGC) warned that all ships entering or leaving ports of "enemy" (U.S. and Israeli) allied nations would be barred from passing through the strait. Three container ships turned back after warnings from the IRGC Navy, the corps said. Two of the ships that turned back were reportedly registered in Hong Kong.
Meanwhile, international oil prices continued to climb as concerns grew that the war between the United States and Iran could become protracted. Brent crude futures for May delivery closed at $112.57 per barrel, up 4.2% from the previous session. West Texas Intermediate (WTI) crude futures for May delivery closed at $99.64 per barrel, up 5.5%.
A single strait is blocked, yet oil tankers have begun sailing halfway around the globe.
