Iran's parliament has passed a law to formally impose transit fees on commercial vessels passing through the Strait of Hormuz. The legislation codifies Iranian sovereignty over the strait and aims to create a new source of revenue, according to Mohammadreza Rezaei Kouchi, an Iranian lawmaker.
"We provide its security, and it is natural that ships and oil tankers should pay such fees," Kouchi told Iranian state media. The move comes as Iran asserts its control over the strategic waterway, a key chokepoint for global oil shipments.
Iran has long objected to the transit-passage rules under the Law of the Sea Convention, which it signed in 1982 but never ratified. The convention generally allows for free passage through international straits. However, Iran's consistent objection over four decades means it is not bound by emerging customary international law in this regard. Unlike man-made canals such as the Suez or Panama canals, the Strait of Hormuz is a natural body of water, and therefore subject to different international maritime regulations.
Under the Montreux Convention, Turkey is permitted to recover costs for passage through certain Turkish straits but cannot impose transit fees. The new Iranian law appears to establish a distinct approach, seeking to generate income from vessels using the Strait of Hormuz. The implications of this new revenue stream and its potential impact on international shipping are yet to be fully realized.