Iran has recently drawn significant international criticism for its proposal to charge commercial vessels up to $2 million for transit through the Strait of Hormuz. This demand has been widely condemned as an act of extortion and a potential threat to global energy security, given the strait's critical role in oil and gas shipments.
The situation highlights a key difference in international maritime law compared to the Suez and Panama Canals. While Egypt and Panama are legally entitled to levy tolls for passage through their man-made waterways, the Strait of Hormuz is an international strait. Under the United Nations Convention on the Law of the Sea (UNCLOS), which Iran has not ratified but largely adheres to customary international law, states bordering international straits cannot impede or charge for transit passage.
For freight forwarders and shippers, any attempt by Iran to enforce such fees would introduce significant uncertainty and potentially increase shipping costs for cargo transiting the Persian Gulf. It could also lead to rerouting decisions, impacting transit times and capacity on alternative routes. The geopolitical implications of such a move could also escalate tensions in an already volatile region, potentially affecting insurance premiums and operational risks for vessels.
