Iran has introduced new regulations requiring ships to obtain transit permits and pay tolls to pass through the Strait of Hormuz, according to a maritime daily, as Tehran and Washington remain at odds over efforts to end the Middle East war and restore access to the strategic waterway.
The move marks a formal confirmation of Iran’s control over the bottleneck, through which about a fifth of the world’s oil is normally transported, even as the United States continues to seek a deal that would reopen the path to unrestricted shipping.
Iran last week set up a new agency to regulate shipping through the Strait of Hormuz and collect transit fees, according to Lloyd’s List, a shipping industry publication. It said Iran had set up the Persian Gulf Straits Authority (PGSA), which “has already put in place a new framework requiring ships to obtain transit permits and pay tolls before sailing”.
how does it work
While referring to a form called “Vessel Information Statement” issued by the authority, the newspaper said ships are required to “submit detailed records of ownership, insurance, crew information and their intended transit route”.
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The form reportedly contains more than 40 questions that require vessels to provide information such as their name, identification number, any former names, ports of origin and destination, the nationality of their registered owners, operators and crew, and details of the cargo they carry.
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How much is the toll?
Iran has not publicly announced an official tariff structure for vessels passing through the Strait of Hormuz. But according to Lloyd’s List, some ship operators have already paid millions of dollars in fees to secure transit approval, with at least one reported payment of around $2 million.
Which countries have to pay tolls?
There is no official list of countries that are required to pay tolls. However, Iran has previously said it would bar vessels affiliated with the United States or Israel from passing through the Strait of Hormuz, while ships from countries it considers “hostile” would only be allowed through with prior coordination and approval from Iranian authorities. India and Pakistan are among the countries that have held talks with Tehran to ensure safe passage for their flagged vessels through the strategic waterway.
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Iran’s Revolutionary Guards-affiliated Press TV said on Tuesday, May 5, that under the new transit regime, “all vessels intending to pass through the strait will receive an email from the official address info@PGSA.ir describing the rules and regulations for the passage.”
Can tolls be disputed?
There is no specific mechanism for enforcing the United Nations Convention on the Law of the Sea (UNCLOS). While the treaty established the International Tribunal for the Law of the Sea, and disputes can also be heard by the International Court of Justice, both bodies can issue rulings but do not have the power to directly enforce them, according to Reuters.
However, countries and companies have several options for responding to any transit fees imposed by Iran. A single nation or a coalition of states could seek to uphold the treaty through coordinated action. The UN Security Council could also reportedly pass a resolution against such a toll.
Firms can choose to divert cargo to avoid the Strait of Hormuz, a move some have already taken. Governments could also expand sanctions to target financial transactions deemed to benefit Iran, including penalizing companies that agree to pay fees.
