Drive up costs and threaten free navigation

Shipping groups warn Hormuz tolls could drive up costs and threaten free navigation

By Mustafa Qadri

Leading shipping associations have urged the United Nations to oppose tolls and service fees for vessels transiting the Strait of Hormuz, as Iran and Oman are close to finalizing a deal on the vital waterway, according to Iran’s deputy foreign minister.

Eight maritime groups signed a joint open letter to the UN and the International Maritime Organization (IMO) on Monday, warning that introducing tolls could drive up costs for consumers and undermine the principles of free navigation.

“Once such a precedent is established, it becomes increasingly difficult to resist similar measures elsewhere, creating uncertainty for international shipping and global commerce,” the letter said.

“These consequences extend beyond shipping costs, contributing to higher energy prices, higher inflation, and higher economic uncertainty. Ultimately, these impacts will carry a human cost, affecting livelihoods around the world.”

On Monday, Iran said it intended to collect “fees” for several maritime services offered alongside Oman in the Strait of Hormuz once the waterway is opened, according to state media. That would mark a major change from the pre-war state, when no country controlled shipping through the waterway. Control or supervision over the chokepoint has become just as much a red line for Tehran as the right to nuclear enrichment.

The prospect of such leverage is unacceptable in Washington, Abu Dhabi and Riyadh. US Secretary of State Marco Rubio has repeatedly said any form of state control over international waters is against international law.

Iran had agreed to not imposing fees or tolls on the strait for 60 days, under the Memorandum of Understanding, before it collapsed as both Tehran and Washington failed to commit to the 14-point agreement.