Iran Proposes Toll on Strait of Hormuz Shipping, Sparking Global Trade Concerns

Iran and Oman are negotiating a plan that would grant Iran extensive control over maritime traffic through the Strait of Hormuz, including the authority to impose a toll on ships passing through the strategic waterway. According to a senior Iranian official involved in the talks, Tehran seeks to charge a fee ranging from 5% to 7% of the cargo value on vessels entering the Persian Gulf, while Oman is considering a lower fee of about 3%. The United States opposes any toll, insisting that passage through the strait remain free of charge.

Under the proposed arrangement, Iran would monitor incoming ships, while outgoing vessels would navigate a route between Iran and Oman and require exit approval from Oman after Iran's notification. Major global shipping associations have strongly criticized the plan, warning that such a toll would set a precedent undermining the principle of free navigation through international straits. In July, the International Maritime Organization's council reaffirmed that passage rights through the strait must be equal, free, and without fees.

Complications arise from U.S. sanctions targeting the Persian Gulf Strait Authority, an Iranian body established to manage maritime traffic. Industry sources warn that paying fees to this authority could lead to asset freezes. Additionally, Lloyd's market insurance has introduced a clause that could void coverage for ships whose owners pay Iran's toll. Prior to the outbreak of war in late February, passage through the Strait of Hormuz was toll-free, but control over the strait has since become a major point of contention in efforts to resolve the conflict.

The negotiations and potential imposition of tolls come amid broader tensions involving Iran, the ongoing conflict, and energy security concerns linked to the vital shipping lane. The outcome of these talks could significantly impact global trade and maritime law regarding freedom of navigation.