Iran Charges Some Ships Hormuz Transit Fees for Safe Passage

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(Bloomberg) — Iran has started charging transit fees on some commercial vessels passing through the Strait of Hormuz, another sign of Tehran’s control over the world’s most important maritime energy channel. 

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Payments of as much as $2 million per voyage are being sought on an adhoc basis, effectively creating an informal toll on the waterway, according to people familiar with the matter, who requested anonymity to discuss sensitive dealings. Some vessels have made the payment, though the mechanism wasn’t immediately clear — including the currency used — and it doesn’t appear to be systematic, the people said.

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The payments show Iran’s influence over Hormuz, through which normally about a fifth of the world’s oil and gas, and vast amounts of food, metals and other materials are shipped every day. With the war in the Middle East now in its fourth week, it also highlights the desperate need for some consumers to ensure continued energy flows.

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People familiar with the matter said the payments have been handled quietly. The lack of transparency and uncertainty over who might be targeted next is adding a fresh layer of friction to the shipping lane. Only a trickle of vessels have crossed the waterway since the war, many of them Iranian-linked vessels. Some of the few others appear to have taken a similar route close to Iran’s coastline.

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India, which has got four vessels carrying liquefied petroleum gas to exit the Persian Gulf through Hormuz, said Tuesday that international laws guarantee the right of freedom for navigation through the strait and no one can levy any fee for use of the channel. 

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Iran’s foreign ministry didn’t immediately respond to a request for comment amid state-imposed restrictions on telecommunications and Internet access.

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While Iran is demanding the transit fee on a case-by-case basis, the Islamic Republic has floated the idea of formalizing the charges as part of a broader postwar settlement, one person said. Last week, an Iranian lawmaker said that parliament was advancing a proposal to require nations to pay Iran for using the Strait of Hormuz as a secure shipping route.

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For Arab producers in the Gulf, even an informal toll is unacceptable, people familiar said, as it raises the issues of sovereignty, precedent and the potential weaponization of a vital trade route for their energy exports.

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—With assistance from Alfred Cang and Donato Paolo Mancini.

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