Iran is reportedly planning to impose transit tolls on foreign commercial vessels passing through the Strait of Hormuz, with the aim of generating nearly US$40 billion in annual revenue. The proposal was reported on Thursday by the Wall Street Journal.
According to the report, Tehran is considering a framework under which foreign ships would pay transit fees in exchange for security guarantees while navigating the strategic waterway. Iranian officials have reportedly held several rounds of discussions with representatives from Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, and the United Arab Emirates, and have proposed sharing a portion of the toll revenues with these Gulf states.
The 167-kilometre Strait of Hormuz, which links the Persian Gulf with the Gulf of Oman, is one of the world’s most critical maritime trade routes. Roughly 20 percent of global oil and natural gas supplies pass through the strait, making any policy changes affecting the waterway highly significant for international energy markets.
Following the launch of a U.S. military operation against Iran on February 28, Tehran imposed restrictions on the movement of foreign vessels through the Strait of Hormuz. The measures disrupted global energy supplies and contributed to higher oil and gas prices in international markets.
At the time, Iran argued that because part of the strait lies within its territorial waters, it has the legal right to collect transit fees from foreign vessels using the route. In March, the Iranian parliament reportedly approved legislation related to the proposed toll system.
The United States has strongly opposed Iran’s position. In response, Washington imposed sanctions on several Iranian ports.
During a recent visit to Oman, Iranian Parliament Speaker Mohammad Bagher Ghalibaf said, “The management of the Strait of Hormuz will never return to its pre-war status.” Analysts view the remarks as a signal of Tehran’s evolving maritime policy.
Meanwhile, U.S. Secretary of State Marco Rubio, currently visiting Bahrain, said no country has the authority to unilaterally impose tolls on an international waterway. He warned that the United States would not accept any agreement recognizing such a requirement in the Strait of Hormuz.
“International waterways are not the property of any single state,” Rubio said. “If such a precedent is established, other countries could impose similar tolls on international shipping routes, creating serious instability for the global trading system.”
The report also noted that shipping traffic through the Strait of Hormuz has gradually begun to recover following recent understandings between the United States and Iran. At least 70 vessels reportedly transited the strategic waterway during a 24-hour period on Thursday.
Source: The Wall Street Journal and NDTV.