Iran renews push for Hormuz transit fees

Iran intends to seek the right to impose transit fees on vessels using the Strait of Hormuz once a 60-day toll-free period expires, according to senior Iranian sources cited by Reuters.

The latest development follows Iran’s introduction of a new insurance and passage-permit requirement for vessels transiting the Strait of Hormuz during the current 60-day interim period.

Iran believes the interim memorandum of understanding reached with the United States in June allows it to retain authority over vessel movements through the strait during the 60-day period, although without collecting fees, Reuters says. Tehran has indicated that it intends to pursue international recognition of its authority to regulate shipping and introduce transit charges once the interim arrangement expires.

Reuters reported in April that Iran was seeking the right to levy transit fees based on a vessel’s type and cargo as part of any permanent agreement on the Strait of Hormuz. A senior Iranian official said Tehran was working with Oman on a navigation protocol, although an agreement had not been reached.

Reuters reported that the United States had opposed any proposal that would allow Iran to charge vessels for transiting the waterway, arguing that the Strait of Hormuz was an international shipping route through which commercial traffic should enjoy free passage.

The legal basis for any future charges remains uncertain. Reuters reported that, while international law generally prohibited states from imposing fees solely for transit through an international strait, charges for specific navigation or maritime services might be permissible under certain circumstances.

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