Iran Considers Tolls on Ships in Strait of Hormuz Amidst Regional Conflict

In a significant development with potential global ramifications, Iran is reportedly considering a bill to charge transit tolls on ships passing through the strategically vital Strait of Hormuz. This proposal, brought forth by lawmakers, aims to leverage Tehran's effective control over the waterway, which handles approximately one-fifth of the world's oil and liquefied natural gas (LNG) shipments [8, 19]. The rationale behind the proposed fees, as stated by a member of the Iranian parliament, Somayeh Rafiei, is to compensate Iran for providing security along this critical maritime route [3, 5, 7]. The discussion around these tolls emerges in the context of escalating regional conflict, following recent attacks on energy sites in the Persian Gulf, including strikes on Iran's South Pars gas field and retaliatory actions against facilities in Qatar and Saudi Arabia [3]. This heightened tension has already led to significant disruptions in maritime traffic through the Strait of Hormuz. Reports indicate that tanker traffic has collapsed by over 90% in March, with only a trickle of vessels now transiting the waterway [10, 14]. Iran has effectively closed the strait to vessels it deems linked to its adversaries and their allies, employing a system of 'selective passage' [4, 10]. Iranian officials have suggested that the conflict could redefine Tehran's role in the Strait of Hormuz, moving it from a position of sanctions to one of power [3]. Mohammad Mokhber, an adviser to Iran's supreme leader, indicated that a "new regime for the Strait of Hormuz" will emerge after the war, allowing Iran to impose maritime restrictions on countries that have sanctioned it [3, 6, 9]. This could include the ability to sanction or prevent ships from passing through the waterway [3]. The implications of such a move extend far beyond regional politics, with significant potential impacts on global energy markets and shipping costs. The Strait of Hormuz is an indispensable chokepoint, and any disruption or imposition of tolls can lead to price hikes for crude oil, LNG, and other commodities [14, 21]. This situation is particularly concerning for India, a major energy importer. Approximately half of India's monthly oil imports and a significant portion of its LNG supply pass through the Strait of Hormuz [19, 21]. Disruptions here could lead to increased prices for LPG cylinders, higher logistics costs for businesses, and a broader impact on inflation [21]. India is already considering a dedicated Rs 1,000 crore war-risk cover fund to support domestic insurers providing coverage for ships navigating high-risk areas like the Strait of Hormuz, as global reinsurers have withdrawn from the region [20]. The concept of Iran charging tolls in the Strait of Hormuz is not entirely new. In July 2019, the Iranian parliament had previously considered a similar motion, citing the provision of security as justification [16, 17]. However, at that time, some analysts argued that Iran could not unilaterally impose tolls on an international waterway and that such a move could violate international norms and potentially contravene U.S. sanctions [17]. The current proposal comes amidst a complex geopolitical landscape. While the U.S. has sought to build an international naval coalition to ensure safe passage, some countries are reportedly negotiating safe passage directly with Iran [11, 13]. Furthermore, there have been reports of Iran considering allowing limited passage of oil tankers if transactions are conducted in Chinese yuan, signaling a potential shift in global trade dynamics and a move towards de-dollarization [22, 23]. The situation remains fluid, with the Strait of Hormuz becoming an increasingly significant strategic tool in the ongoing regional conflict. The proposed tolls represent a potential monetization of Iran's leverage over this critical global artery, with far-reaching economic and geopolitical consequences for countries worldwide, including India. The news was published on March 19, 2026.

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