Iran plans 'insurance fee' for Strait of Hormuz passage, seen as de facto toll

Iran is preparing to levy what it calls an "insurance fee" on vessels transiting the Strait of Hormuz, a move widely seen as a precursor to imposing tolls on maritime traffic. The Ports and Maritime Organization of Iran (PGSA) published new regulations requiring all ships passing through the strait to obtain mandatory insurance. This insurance is intended to cover damages from ship seizures or mine damage, though it excludes losses due to war or quarantine-related detentions.

While the Iranian government currently covers the insurance premiums, the new terms suggest this could change, with ships potentially bearing the costs in the future. The PGSA, established during the U.S.-Iran tensions to manage traffic in the strait, has also mandated that ships must follow a specific route near Iran's coast. Deviating from this route could result in the ship being held responsible for any resulting damages, fines, or accidents.

These developments come amid heightened concerns for maritime safety in the region. A recent report of a mine found near Oman's coast, away from the designated Iranian shipping lane, has amplified fears about the risks of using alternative routes. Consequently, Bloomberg reported a significant decrease in vessel traffic attempting to transit the Strait of Hormuz.

Gulf coastal states and international shipping companies are appealing to the U.S. administration to intervene and block Iran's potential toll imposition. They argue that such a move would violate international law and set a dangerous precedent. The new regulations also stipulate that transit permits issued upon insurance enrollment are valid for a single passage and expire after five days, requiring new permits for subsequent transits.