Tankers urged not to pay toll to Iran for use of strait

Tankers Urged Not to Pay Iran for Use of Strait

After a ceasefire deal on Tuesday stalled, maritime vessels navigating the Strait of Hormuz are now being told to avoid paying fees to Iran for passage. The agreement aimed to restore traffic through the vital waterway, but Iran has asserted that ships must seek its approval or risk being “targeted and destroyed,” potentially imposing charges for safe transit.

Intertanko’s Stance on Toll Payments

Phillip Belcher of Intertanko, which represents 190 independent tanker operators and more than half of the global oil tanker fleet, expressed skepticism about tolls. “We do not believe the payment of tolls is the right way forward,” he told the BBC. “It’s surprising that this has become a key issue in talks.”

“We are amazed that this appears to be one of the starting points of negotiations,” Belcher said.

US-Iran Ceasefire Talks in Pakistan

US Vice President JD Vance is meeting Iranian officials in Islamabad, Pakistan, to finalize details of the ceasefire. However, the deal faces uncertainty due to ongoing air strikes in Israel and Lebanon, as well as a deadlock over the strait’s access. Belcher emphasized that Intertanko continues to advise members to avoid the route unless there’s a guaranteed end to hostilities.

“We do not believe the Strait is safe until there is a lasting cessation of conflict… where Iran does not have sovereignty of the strait,” he added.

International Law and the IRGC’s Role

Belcher argued that tolls contradict international law, which ensures free passage through straits. He highlighted that the Iranian Revolutionary Guard Corps (IRGC), a military branch overseeing Iran’s economic activities, is designated as a terrorist group by the US and EU. “The IRGC is a designated terrorist organisation… so payment to it should be avoided,” he stated.

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Proposed Transit Fees and Trump’s Comments

Reports suggest Iran plans to charge up to $2 million per ship for passage, with proceeds split between Iran and Oman. President Trump initially proposed a “joint venture” fee system but later dismissed the idea, posting on social media: “They better not be… and if they are, they better stop now.”

Impact on Global Trade

The conflict has severely disrupted traffic through the strait. Only 15 vessels have passed since the ceasefire agreement, compared to an average of 140 daily before the war. Over 800 ships remain stranded in the Gulf, most carrying cargo. Prolonged blockage could strain oil, gas, fertiliser supplies, affecting fuel, electricity, food, and medicine prices worldwide.

Industry Caution and Safety Concerns

Erik Hanell, CEO of Swedish tanker firm Stena Bulk, noted the uncertainty around when the disruption will end. “We need safety guarantees,” he said. “There are discussions between the US and shipping communities, but we have limited information.” Stena, he added, would not pay tolls as a standalone company without official assurances.

“Longer term, paying fees to use the Strait of Hormuz would be like paying to cross the English Channel,” Hanell remarked.