The Strait of Hormuz, a vital maritime chokepoint, has drawn renewed global attention after reports that Iran is demanding up to USD 2 million from some vessels for “safe passage.” The Hormuz safe passage fee clearly violates international law and regulations.
Although Iranian officials deny any formal toll regime, multiple independent media and shipping industry sources report that ad hoc payments have been requested and, in some cases, made by vessels transiting the strait. These allegations have raised concerns among shipowners, charterers, insurers, and governments due to the strait’s significance for global energy and trade.
Why the Strait of Hormuz Matters
The Strait of Hormuz connects the Persian Gulf with the Arabian Sea and is the single most important maritime corridor for global energy trade.
Key facts:
- Roughly 20% of the world’s oil and LNG normally transits the strait.
- It serves major exporters, including Saudi Arabia, Iraq, Kuwait, Qatar, and the UAE.
- Disruption to Hormuz has immediate impacts on:
- Tanker freight rates
- Energy prices
- Marine insurance
- Global supply chains
Any effort to restrict or monetise passage through the strait carries significant global consequences.
Origin of the $2 Million “Safe‑Passage” Claims
The claims surfaced in mid-March 2026 after Alaeddin Boroujerdi, a member of Iran’s parliamentary national security committee, stated publicly that some vessels were being charged up to $2 million to cross the Strait of Hormuz. He described this as part of a new “sovereign regime” during wartime.
Subsequent reporting by Bloomberg, Deutsche Welle, Lloyd’s List, Rigzone, and Reuters‑cited outlets added that:
- Payments are not standardised.
- They are requested selectively.
- They are applied primarily to oil tankers, gas carriers, and high‑value cargo vessels.
- Requests are managed discreetly through intermediaries rather than official tariffs.
What Is Confirmed — and What Is Not
✅ Confirmed by credible sources
- Iran has demanded payments from some vessels seeking to transit the strait.
- Amounts have reached up to $2 million per voyage in certain cases.
- Some vessels are believed to have complied, according to industry sources.
- The practice is ad hoc, opaque, and selective rather than universal.
❌ Not confirmed
- There is no published Iranian law or official toll system.
- No formal notification has been issued through the IMO establishing transit fees.
- Iranian embassies and officials have issued partial denials, stating these claims do not reflect official state policy.
How Transit Currently Works in Practice
According to Bloomberg reporting on 25 March 2026, vessels seeking passage are required to:
- Submit crew lists
- Provide cargo manifests and bills of lading.
- Declare voyage details
- Coordinate directly or indirectly with Iranian authorities.
Bloomberg reports that payments are requested in some cases but not others, indicating that access is managed on a case-by-case basis rather than through open navigation.
Legal Implications Under International Maritime Law
Maritime law experts warn that charging transit fees in an international strait used for transit passage would likely violate the United Nations Convention on the Law of the Sea (UNCLOS).
Key points:
- International straits cannot be subject to unilateral tolls.
- Freedom of navigation is a foundational principle of global maritime trade.
- Several countries, including India, have publicly stated that no state has the legal right to levy fees for transit through the Strait of Hormuz.
If formalised, such fees could trigger:
- Diplomatic retaliation
- Legal disputes
- Naval escorts or international intervention
Impact on Tanker Markets and Freight Rates
Even in the absence of a formal toll regime, the resulting uncertainty has significant market effects:
- Tanker traffic through Hormuz remains sharply reduced.
- Vessels reroute via the Cape of Good Hope or the Red Sea.
- Longer voyages increase tonne‑mile demand.
- War‑risk insurance premiums have surged.
- VLCVLCC and Suezmax spot rates remain elevated. Market analysts note that routing inefficiency is now acting as a structural support for tanker earnings, regardless of global oil demand trends.
Conclusion
Reports of $2 million “safe-passage” payments in the Strait of Hormuz represent one of the most serious challenges to freedom of navigation in decades.
Although no formal toll regime has been established, credible reports confirm that selective payments have been requested and, in some cases, made. The practice remains opaque, legally disputed, and highly destabilising for global shipping and energy markets.
As long as transit through Hormuz remains permission-based rather than predictable, tanker markets, insurance costs, and global trade will remain under pressure.
