Iran’s $2 Million Strait Toll Gamble

Iran is seeking to charge as much as $2 million for every ship that passes through the Strait of Hormuz, in a move that has jolted global shipping markets. Tehran says the fees would “regularize” the costs tied to its control of the waterway.

A New York Times report said the move would deepen uncertainty for companies whose ships and crews have remained stranded in the area for nearly three months because the war has continued. International analysts, however, have ruled out any real chance of Tehran institutionalizing the charges, saying they would plainly violate international law.

Still, the development has raised concerns about Iran’s ability to control maritime traffic even after the current conflict ends. Arsenio Dominguez, the head of the International Maritime Organization, said the organization firmly rejects any compulsory costs that restrict freedom of navigation, after Iranian-Omani talks were revealed on setting up a toll system in the strait.

Tehran’s toll plan and security scheme

Iran has also taken practical steps to entrench its control, including the creation of a regulatory body it called the “Gulf Strait Authority” to manage operations and oversee the collection of fees that could reach $2 million per ship. It also put forward a parallel security plan that would allow companies to pay the fees and insurance coverage through digital currencies.

Tehran said ships that deviate from the routes set by Iran would risk military strikes. At the same time, President Donald Trump said the United States completely rejects any Iranian collection system in the Strait of Hormuz, describing it as an international passage that must remain free and open to all.

Washington’s naval blockade

Washington is backing that position with a strict naval blockade enforced by U.S. Central Command outside the strait. So far, it has redirected 94 commercial vessels and completely halted Iranian oil exports.

The U.S. naval blockade has created a severe congestion crisis inside Iranian oil facilities, with crude tanks on Kharg Island, the main island, more than 80% full because Tehran has been unable to export. Western shipping options also appear constrained by tough U.S. sanctions, as the Treasury Department warns companies against paying Tehran and bars them from risking the loss of international insurance coverage.

Temporary deals and wider risks

The blockade has not stopped some countries, including India, Pakistan and Iraq, from reaching temporary understandings with Tehran to secure passage for their ships, while vessels linked to China remain the most likely to pay the Iranian fees.

The maritime crisis began in February/ شباط last year after U.S.-Israeli strikes on Iran, which prompted Tehran to shut down traffic in the strait and detained 1,500 ships and about 20,000 sailors. In the end, the biggest danger in Iran’s maneuvers lies in tempting other states to assert sovereignty over vital straits, as has happened in the Strait of Malacca, where some parties are hinting at charging fees.

As Tehran tries to impose a new geopolitical reality to make up for its losses, the current battle over the straits shows that the global economy has become the biggest casualty of the brinkmanship between Washington and Tehran.