Iran Proposes Transit Fees for Strait of Hormuz

The government of Iran is seeking to impose a transit fee on ships passing through the Strait of Hormuz ^[1].

This proposal threatens to disrupt one of the world's most critical maritime chokepoints, potentially increasing shipping costs and escalating diplomatic tensions over international waters.

Reports from April 7, 2026, indicate that Iran has proposed charging up to $2 million [1, 2] per vessel for transit through the strait. This move mirrors the financial models used by the Suez Canal Authority in Egypt and the Panama Canal Authority in Panama, both of which legally levy tolls on ships using their respective waterways [1, 2].

However, legal experts said there is a fundamental difference between these canals and the Strait of Hormuz. Under the United Nations Convention on the Law of the Sea (UNCLOS), the Strait of Hormuz is classified as an international strait [1, 2]. International law prohibits the levying of transit fees in such straits to ensure the free flow of global commerce, a protection not afforded to sovereign canals.

Sovereign canals like Suez and Panama are owned and operated by states that possess the legal authority to set and collect tolls [1, 2]. Because the Strait of Hormuz is a natural waterway between Iran and Oman, it does not fall under the same ownership structure that permits the Egyptian and Panamanian governments to charge for passage [1, 2].

Despite these legal restrictions, the Iranian government has moved forward with the proposal ^[2]. The tension between national ambition and international maritime treaty law creates a precarious situation for the thousands of tankers and cargo ships that rely on the passage daily ^[1].