Iran is demanding the right to collect tolls in the Strait of Hormuz as a precondition for reopening the vital waterway after its war with the United States and Israel.
The strait is a key route for global oil supplies, but analysts warn that charging ships would violate the long-standing principle of freedom of navigation under international law.
The United Nations' Convention on the Law of the Sea, in effect since 1994, guarantees the "innocent passage" of ships through straits that do not threaten coastal states.
Experts say allowing Iran to collect tolls could set a dangerous precedent.
"Freedom of navigation has always been recognized, including specifically in straits," said Philippe Delebecque, a maritime law professor at Paris' Sorbonne University.
He added that if Iran were allowed to charge tolls, other strategic waterways like the Strait of Gibraltar or the Strait of Malacca could face similar restrictions, potentially undermining international maritime order.
According to AP News, after the war began on February 28, Iran blocked the strait with attacks and threats, causing immediate shortages in Asia and higher gasoline prices in the US and Europe.
It then implemented a "tollbooth" scheme, requiring ships to detour around Larak Island and submit detailed information about their crew and cargo to intermediaries of Iran's Islamic Revolutionary Guards Corps.
At least two vessels reportedly paid $2 million in Chinese yuan for passage.
Iran’s proposal to collect tolls in the Strait of Hormuz violates trade norms: https://t.co/3wzIq7ATFC
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US Opposes Iran's Hormuz Toll Plan
Iran's 10-point proposal to end the war includes allowing itself and Oman to charge ships passing through the strait, with the funds earmarked for reconstruction, according to a regional official involved in the negotiations.
While the financial impact of tolls on global oil prices might be small—around $1 per barrel on a fully loaded tanker—experts warn about the geopolitical consequences.
An Iranian toll could enrich the Revolutionary Guards and encourage other countries to restrict navigation in their waters, including China in the Taiwan Strait.
US President Donald Trump has prioritized reopening the strait, but the White House opposes tolls, Inquirer reported.
Gulf producers, including Saudi Arabia, share the concern, fearing that Iranian control could limit oil exports.
The region has already had to shut down roughly 12 million barrels per day in crude production due to the blockade, and pipelines bypassing the strait are insufficient to replace lost shipments.
Julien Raynaut, head of the French Association of Maritime Law, said, "Not having ratified the convention doesn't give Iran total freedom of action in the Strait of Hormuz. It remains subject to international law and notably this customary right of passage."
Analysts argue that reopening the strait freely would stabilize energy prices, reduce the geopolitical windfall for Russia, and restore a measure of predictability to global trade.
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