Iran's Hormuz Tolls Spark International Opposition
Translated from Serbian, summarized and contextualized by DistantNews.
At a glance
- Iran is demanding up to $2 million per ship for passage through the Strait of Hormuz, citing war reparations and navigation services.
- This move has been labeled "maritime racketeering" by the Institute for the Study of War, with the US and China opposing the fees.
- Unlike artificial canals like Suez and Panama, international maritime law grants transit passage through natural straits, limiting coastal states' ability to charge fees to only specific services.
Iran is demanding substantial fees, up to $2 million per vessel, for safe passage through the Strait of Hormuz, a critical global energy corridor. The Institute for the Study of War has condemned these charges as "maritime racketeering," a stance echoed by the United States and China, who have agreed to jointly oppose the levies. Gulf nations have also rejected Iran's practice.
Tehran justifies these demands as war reparations for losses incurred during U.S.-Israeli attacks and as compensation for "navigation services," environmental protection, and enhanced security. The country also announced plans to establish a joint protocol with Oman, requiring ships to obtain special permits before entering the strait. While some smaller Asian shipping companies have quietly complied, major global operators are refusing to pay.
International maritime law, particularly the UN Convention on the Law of the Sea (UNCLOS), guarantees the right of transit passage through international straits for ships and aircraft of all nations. Coastal states are prohibited from obstructing this transit and can only levy limited fees for specific services like pilotage or towing.
This contrasts sharply with artificial waterways like the Suez and Panama canals. Egypt, for instance, earns approximately $4 billion annually from transit fees for the Suez Canal, a practice permitted by the 1888 Constantinople Convention to cover maintenance and operational costs. Similarly, the Panama Canal Authority manages its own artificial waterway, justifying its fees through the significant investment and upkeep required.
Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.