Iran's Potential to Monetize Control of the Strait of Hormuz
This analysis explores how Iran could formalize control over the Strait of Hormuz by charging transit fees, potentially framed as service charges for maritime security and pilotage. Following attacks on commercial vessels and a de facto closure of the strait, Iran has begun requiring payments and documentation from ships seeking passage. Experts suggest that while international law generally prohibits tolls in international straits, Iran might justify fees by citing safety concerns and the need for escorted transit, similar to practices in the Torres Strait or under the Montreux Convention. The article highlights ongoing US-Iran negotiations in Pakistan, noting that a peace deal could legitimize this arrangement despite legal ambiguities. Currently, traffic through the strait has dropped significantly, with only a fraction of usual vessels passing, many belonging to shadow fleets. While the US administration has shown mixed signals regarding shared toll proceeds, legal experts warn that officializing such fees could invite global criticism unless carefully structured as mandatory safety services rather than explicit tolls.
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Iran's Potential to Monetize Control of the Strait of Hormuz
This analysis explores how Iran could formalize control over the Strait of Hormuz by charging transit fees, potentially framed as service charges for maritime security and pilotage. Following attacks on commercial vessels and a de facto closure of the strait, Iran has begun requiring payments and documentation from ships seeking passage. Experts suggest that while international law generally prohibits tolls in international straits, Iran might justify fees by citing safety concerns and the need for escorted transit, similar to practices in the Torres Strait or under the Montreux Convention. The article highlights ongoing US-Iran negotiations in Pakistan, noting that a peace deal could legitimize this arrangement despite legal ambiguities. Currently, traffic through the strait has dropped significantly, with only a fraction of usual vessels passing, many belonging to shadow fleets. While the US administration has shown mixed signals regarding shared toll proceeds, legal experts warn that officializing such fees could invite global criticism unless carefully structured as mandatory safety services rather than explicit tolls.
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