Various international discussions are under way over the possibility of imposing a toll on shipping in the Hormuz Strait, a key waterway for global energy trade. On the questions of whether such a toll would be mandatory or voluntary, what international maritime law says, and how the strait’s control and security would be ensured, there are clear differences among the parties concerned, including Iran, the United States, Europe and Oman. But European countries are considering a proposal for a “navigation fee,” a fee paid in exchange for shipping services.
Iran says ships transiting the Hormuz Strait must pay a specific fee. The United States, however, demands that Iran immediately reopen the strait and pledge that it will not attack any ship using the route. Europe, meanwhile, says a toll is possible but must not be mandatory, while Oman does not want Iran to impose a toll unilaterally.
One-fifth of the world’s crude oil and liquefied natural gas (LNG) passes through the Hormuz Strait, which has now become the focal point of the US-Iran conflict. After the United States and Israel jointly launched an assault on Iran on February 28, Tehran was able, as a counter-measure, to close the Hormuz Strait very effectively, and control of this strategic global waterway effectively remains in Tehran’s hands.
With the aim of permanently ending the war, the United States and Iran agreed to a 14-point memorandum of understanding on June 17, intended to prolong the ceasefire and end all conflict. As part of the agreement, Iran and Oman are to hold talks with other Gulf countries to determine how the future administration and naval services of the Hormuz Strait will be run.
Who is saying what. European countries are reviewing several proposals that could create scope to collect a “navigation fee” for shipping in the Hormuz Strait, but their condition is that such a toll can in no way be made mandatory, and that the matter must have the support of the International Maritime Organization (IMO), the UN’s maritime body.
Britain’s deputy prime minister, David Lammy, said on Saturday that making a toll mandatory in the Hormuz Strait would be catastrophic for international trade. Several members of the UK cabinet, however, said that money is charged in exchange for specific services on many of the world’s natural waterways, including the Strait of Malacca and the English Channel, and that such arrangements are internationally recognized.
Oman favors a voluntary payment system in exchange for services provided to ensure the strait’s security, through which Iran could also receive some money, but not as a unilateral, mandatory toll. Oman’s aim is to keep the Hormuz Strait operating under international law, with free navigation, and it has given Tehran a proposal to that end.
The United States wants Iran to publicly declare that the Hormuz Strait is open, and the country must also pledge to stop attacks on commercial ships. Washington said it had sent a message to Tehran’s leadership through mediators, asking Tehran to declare publicly that the Hormuz Strait is open and that it will no longer fire on commercial ships.
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