Iran Demands Millions for Safe Passage Through Strait of Hormuz Amid Rising Tensions
The escalating conflict involving Iran is reverberating through global energy markets, with accusations of opportunistic price increases leveled against fuel retailers and major oil companies alike. The situation has been further complicated by reports that Iran may be charging hefty fees for safe passage through the Strait of Hormuz, a critical chokepoint for global oil and gas shipments.
Since , the United States and Israel have been conducting strikes within Iran, ostensibly aimed at weakening the regime in Tehran. These actions have already driven up global oil prices, with Brent crude reaching levels not seen since mid-, and Omani crude hitting a record high of over $150 per barrel. Approximately 20 percent of the world’s oil demand transits the Strait of Hormuz, making it a strategically vital waterway.
In response to the attacks, Iran has not only targeted Israel and U.S. Military bases in the region but also civilian infrastructure in neighboring Gulf states. However, the most significant impact on oil prices stems from Iran’s increasing restrictions on passage through the Strait of Hormuz. The number of commercial vessels, including oil tankers, container ships, and bulk carriers, traversing the strait has plummeted from around 140 per day to a significantly reduced number. This sudden constriction of supply has fueled a surge in crude oil prices.
Adding to the instability, Iran has reportedly targeted oil and gas infrastructure, including Ras Laffan in Qatar – the world’s largest LNG export terminal – as well as refineries in Kuwait and Saudi Arabia. Experts estimate that repairing the damage will take months, if not years.
Allegations of a “Toll” on the Strait of Hormuz
The most contentious allegation centers on reports that Iran is demanding payments of up to $2 million per vessel for “safe passage” through the Strait of Hormuz. Lloyd’s List, a highly respected maritime publication, reported last week that at least one tanker is believed to have made such a payment.
While several Iranian officials have denied the reports, Alaeddín Boruyerdí, a member of the Iranian parliament, stated on Iranian state television that such fees were being collected as part of a “new sovereign regime” in the strait, framing the measure as a means to cover the “costs of war.”
Robert Huebert, an expert in international relations at the University of Calgary, Canada, argued that such a levy would constitute a violation of international maritime law. “Freedom of navigation is the foundation of international maritime commerce, the ability to transit these areas without any kind of impediment,” Huebert said in a recent podcast. “If a toll were imposed, practically every country would directly object.”
Peter Sand, chief analyst at Xeneta, a maritime analysis firm based in Copenhagen, downplayed the significance of the fee itself, noting that over 3,200 vessels are currently stranded. “However high it may seem, the $2 million transit charge is not the essential factor,” Sand explained. “What matters is that it remains dangerous to transit Ormuz.”
The willingness of major oil and gas importers to engage in direct negotiations and pay a substantial fee, alongside high war risk insurance premiums, underscores the growing desperation of fuel-dependent nations to secure even minimal supplies through the strait. “Some countries may be willing to pay,” Sand added. “It’s a slight additional cost to ensure an uninterrupted energy supply.”
Payments Despite Sanctions
Lloyd’s List reported that the method of payment remains unclear, given that Iran is subject to international sanctions, which complicate its ability to receive payments in U.S. Dollars through Western financial channels. The publication indicated that India, Pakistan, Iraq, Malaysia, and China are in direct contact with Iranian officials to arrange safe passage for their vessels.
Bloomberg, also reporting on the matter, cited anonymous sources claiming that several ships had made payments to transit the strait, although the practice does not appear to be systematic. According to a Bloomberg source, Tehran is considering formalizing the payment of this toll as part of any potential peace agreement with the United States and Israel.
Iran Offers Safe Passage to “Non-Hostile” Vessels
On , Iran sent a letter to member states of the International Maritime Organization (IMO), stating that it would now allow the passage of “non-hostile” vessels through the Strait of Hormuz, with coordination from Tehran. “So far, Iran has approved between three and five transits per day,” Sand stated. “Tehran is now saying the strait is open to those who are not enemies of Iran.”
An IMO spokesperson stated that the organization is working to establish a “provisional and urgent measure to facilitate the safe evacuation of merchant ships currently confined in the Gulf region.” The IMO emphasized the importance of protecting the lives and well-being of stranded sailors and urged that ships willing to transit the Strait of Hormuz be allowed to do so without being attacked.
Naval Escorts Not a “Long-Term Solution”
The United States has been pressing European allies within NATO to join a multinational patrol or naval escort mission in the Gulf to safeguard international maritime transport. However, European countries have largely resisted immediate participation. Nevertheless, many, including Germany, France, and Italy, have signaled their willingness to contribute to an escort or patrol mission once hostilities cease.
The IMO stated that while naval escorts have been used previously, even during recent attacks by Iranian-backed Houthi rebels against ships in the Red Sea, they do not provide a “sustainable or long-term solution.”
“There needs to be a multilateral solution to reduce tension and allow the evacuation of civilian mariners and ships to a place of safety,” the IMO spokesperson said.