Iran Demands Permits, Insurance for Hormuz Strait Passage; Fears of Fees Rise

Iran is asserting control over the Strait of Hormuz, demanding that vessels secure permits and mandatory insurance for passage. This initiative has raised concerns among shipowners and oil producers, who fear it could lead to Iran imposing fees on transit through the critical oil shipping lane.

The Port and Maritime Organization (PGSA) of Iran announced that while the required insurance is currently provided free of charge, the organization reserves the right to levy fees in the future. Additionally, ships must adhere to designated routes along Iran's coast and are prohibited from choosing alternative paths.

Sources indicate that U.S. allies, led by the United Kingdom, are urging the Trump administration to resist normalizing Iran's charging of transit fees. Industry stakeholders warn that such fees would violate international maritime law and set a dangerous precedent for other waterways.

The PGSA, established during wartime and subject to U.S. sanctions, requires ships to apply for transit permits, which are typically processed within 48 hours and are valid for five days. The organization has also published maps of safe shipping lanes, stating that any deviation will be considered a violation.

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Currently, this insurance is provided free of charge to shipowners, with all costs borne by the Islamic Republic of Iran; the PGSA reserves the right to collect insurance premiums in the future, the specific situation to be determined by the relevant insurance companies, and shipowners will be required to purchase and renew it at that time.