Here’s How Iran is Charging Ships to Pass the Strait of Hormuz Like a Toll Plaza

Iran has effectively imposed a new “toll booth” system for ships passing through the Strait of Hormuz, tightening its control over one of the world’s most critical energy chokepoints amid the ongoing conflict involving the United States and Israel.

The narrow waterway, located between Iran to the north and Oman and the United Arab Emirates to the south, carries about 20 percent of global oil and gas supplies.

Disruptions there have pushed oil prices above $100 per barrel and raised fears of a global recession.

According to International Maritime Organization Secretary-General Arsenio Dominguez, nearly 2,000 vessels are waiting on both sides of the strait as operators hesitate to enter the waterway.

Shipping intelligence firm Windward said many vessels are holding position rather than rerouting on longer and more expensive journeys around Africa.

Reports from the shipping journal Lloyd’s List say ships seeking passage must first contact intermediaries linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).

Operators must submit detailed information, including:

If approved, the IRGC issues a clearance code and navigation instructions. Iranian naval forces then verify the code over the radio and escort the ship through Iranian territorial waters near Larak Island.

Ships that fail the vetting process are denied passage.

Iranian media outlets Tasnim News Agency and Fars News Agency reported that lawmakers in the Islamic Consultative Assembly are preparing legislation that would formally authorize transit fees for ships using the strait.

Iranian officials argue the charges are justified because the country provides security for vessels passing through the corridor. Some reports suggest certain ships have already paid fees reportedly reaching $2 million for safe passage.

International maritime law complicates Iran’s position. Under the United Nations Convention on the Law of the Sea (UNCLOS), ships enjoy the right of transit passage through international straits, meaning coastal states cannot suspend navigation.

However, Iran maintains it has sovereignty over parts of the waterway and argues wartime security concerns allow it to inspect vessels.

Legal experts say broad restrictions or transit fees could be viewed as illegal economic warfare, though enforcement during armed conflict remains uncertain.

The crisis has already disrupted global shipping and energy markets. Several countries, particularly in Asia, have begun rationing fuel and reducing industrial output as supply chains tighten.

With the Strait of Hormuz serving as the primary export route for Gulf oil producers, prolonged disruption could deepen the global energy shock and further destabilize the world economy.