Transit Toll Dispute Freezes Prospects for Hormuz Route Recovery

Source: Bakamla / Splash247

The crisis at the Strait of Hormuz has entered its eighth week without any significant signs of recovery in commercial vessel traffic. The operational landscape has become more deadlocked as conflicting proposals regarding transit tolls - from both Washington and Tehran - complicate legal and commercial risks. For shipowners seeking a sustainable solution to restore the waterway, this lack of transparency poses a major hurdle.

Inconsistent Signals from Washington

Recent market volatility stems from a series of contradictory statements by US President Donald Trump. On Wednesday, during an interview with ABC News, Mr. Trump suggested the possibility that the US and Iran were "thinking of doing it as a joint venture" regarding toll collection through the strait, describing the deal structure as "a way of securing it, also securing it from lots of other people. It’s a beautiful thing."

However, later that same day during a White House press briefing, he presented a starkly contrasting view: "What about us charging tolls? I’d rather do that than let them have them, right? Why shouldn’t we? We’re the winner."

Iran's Toll Move and Washington's Retaliatory Stance

Within 24 hours, Trump shifted his stance as reports emerged indicating that Iran was preparing to implement an independent toll mechanism. Hamid Hosseini, spokesperson for the Iranian Oil, Gas and Petrochemical Products Exporters' Union, told the Financial Times that Tehran would require vessels transiting the strait to pay a fee in cryptocurrency equivalent to $1 per barrel of oil on board during the two-week ceasefire period. According to JP Morgan estimates, this toll could generate between $70 billion and $90 billion annually for Iran.

In response to this news, President Trump posted a stern warning on Truth Social: "There are reports that Iran is charging fees to tankers going through the Hormuz Strait – they better not be and, if they are, they better stop now!"

Legal Perspective: A Violation of Freedom of Navigation

The international legal community has fiercely opposed the prospect of commercializing this strait. The European Commission reaffirmed that freedom of navigation implies "no payment or toll whatsoever," defining the maritime route as "a public good for all humanity."

Echoing this sentiment, the International Maritime Organization (IMO) warned that imposing transit fees would "set a dangerous precedent."

The IMO cited provisions of the United Nations Convention on the Law of the Sea (UNCLOS) that guarantee the right of transit passage through international straits and strictly prohibit coastal states from hampering this right. Nevertheless, a major legal sticking point is that neither the US nor Iran has officially ratified these provisions of UNCLOS.

Cost Implications for the Liquid Bulk Sector

Oil industry executives have urgently intervened to protect commercial interests. In meetings with senior US State Department officials, they warned that conceding to Iran's toll demands would incur an additional $2.5 million in direct costs, triggering a surge in marine insurance premiums per voyage.

Executives also highlighted systemic risks: yielding could embolden other nations to make similar moves at strategic maritime chokepoints like the Strait of Malacca or the Bosphorus, while simultaneously exposing businesses to the risk of sanctions violations.

With official negotiations between the US, Iran, and Pakistan now scheduled in Islamabad, the core question of who holds control - and who reaps the benefits - from this shipping lane remains unanswered. Consequently, commercial operators have no choice but to await transparent legal frameworks before they can safely restore normal operational standards.

See more:

• Strait of Hormuz Maritime Routes Remain Restricted Despite Ceasefire Agreement
• Gulf Tensions: Iran Unilaterally Reconfigures Maritime Routes Through the Strait of Hormuz
• Panama Canal Dispute Escalates: Hutchison Officially Initiates Arbitration Against Maersk
• US Gulf to West Coast South America Trade: Maersk Officially Implements Peak Season Surcharge (PSS)
• Ocean Freight Market Stalls: Overcapacity Outweighs the 'Hormuz Shock'
• FMC Rejects Maersk's Emergency Bunker Surcharge Request for the Second Time
• CMA CGM Kribi: First Western Vessel to Transit Hormuz Amid US-Iran Tensions
• International Shipping and Logistics Market Update Week 14/2026 | Phaata
• COSCO updates Vietnam-Intra Asia sailing schedules in Apr 2026
• COSCO schedules: Vietnam - North America in Apr 2026
• SITC updates Vietnam-Intra Asia sailing schedules in Apr 2026

Source: Phaata.com (According to Splash247)

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