Iran imposed a “de facto toll booth regime” in the Strait of Hormuz even before its parliament unveiled plans to formally charge ships transiting the critical maritime route, it has been reported.
The Islamic Revolutionary Guard Corps (IRGC) already required ships to submit full documentation, obtain clearance codes, and accept escorted passage through a controlled corridor of the strait, according to Lloyd’s List, a global authority on shipping.
The Strait of Hormuz is one of the world’s most critical energy chokepoints because a fifth of the global oil supply typically passes through it.
Iran’s parliament is pursuing legislation to “formally codify Iran’s sovereignty, control and oversight over the Strait of Hormuz, while also creating a source of revenue through the collection of fees,” lawmaker Mohammadreza Rezaei Kouchi said, according to Fars and Tasnim news agencies. The arrangement was “entirely natural”, he said.
“We provide its security, and it is natural that ships and oil tankers should pay such fees,” Mr Kouchi added.
Since 13 March, according to the Lloyd’s List report published on Wednesday, 26 vessel transits have followed the route controlled by the IRGC. There have been no transits via the normal route since 15 March.
Iran this week told the UN Security Council that “non-hostile” ships could be allowed to transit the strait, but data showed that traffic remained at a fraction of the pre-war level.
On Tuesday, only four ships were seen crossing the strait, with standard commercial shipping lanes empty as of early morning, according to the maritime intelligence firm Windward.
Ten large vessels were observed staging north of Larak Island off Iran, apparently waiting for controlled transit, it noted. Two further cargo vessels entered the Gulf without transmitting their locations, hugging the Omani coast, in a pattern Windward said was consistent with operators trying to avoid engaging the Iranian system entirely.
Any ship that does engage the system is required to contact intermediaries with IRGC connections, submitting its identification number, ownership chain, cargo manifest, destination and full crew list, according to Lloyd’s List.
The documentation is forwarded to the IRGC navy’s Hormozgan Provincial Command for sanctions screening, cargo checks, and what Lloyd’s List describes as “geopolitical vetting”. If cleared, the IRGC provides a clearance code and route instructions, and a pilot boat escorts the vessel through Iranian territorial waters around Larak, one of the world’s oldest continually published newspapers noted in its report.
At least two vessels paid a direct toll, with payments settled in yuan, Lloyd’s List said. Many others appeared to be transiting after diplomatic intervention rather than direct payment. Iranian foreign minister Abbas Araghchi said on Thursday that Iran had permitted “friendly nations” like Pakistan, India, Iraq, China and Russia to use the strait.
The system carries significant legal risks for shipping companies. The IRGC is classified as a Foreign Terrorist Organisation (FTO) under US law, meaning that any payments, even indirect ones, could expose companies to criminal prosecution.
“Under US law, providing ‘material support’ to a designated FTO carries not just civil and regulatory risks but the risk of criminal prosecution,” Claire McCleskey, a former compliance official for the US Treasury’s Office of Foreign Assets Control, said in the Lloyd’s List report.
Trade attorney Manny Levitt of law firm Holland and Knight warned that even if toll payments were allowed under a recent US licence for Iranian oil loaded before 20 March, they would not be protected under UK or EU sanctions, nor would they shield companies from liability under US anti-terrorism statutes.
Despite the risks, Lloyd’s List said security firms had been “inundated” with requests by ship owners seeking clarity on the legal consequences of engaging with the Iranian system.
The Strait of Hormuz is deemed an international waterway open to all shipping. Formalising fees would end that status and, thus, face strong opposition from Gulf Arab states and their Western allies.
