Iran proposes sharing toll revenue with regional states; US opposition dismissed as hollow

A cargo ship passes through the Strait of Hormuz, seen from northern Ras al-Khaimah near the border of Oman's Musandam Governorate. [Reuters]
A cargo ship passes through the Strait of Hormuz, seen from northern Ras al-Khaimah near the border of Oman's Musandam Governorate. [Reuters]

Iran has again insisted that the Strait of Hormuz will never revert to its pre-war arrangement of free, unrestricted passage. Tehran is standing firm on its plan to charge ships transiting the strait once a 60-day toll-free period expires — and is projecting annual revenue of $40 billion (60 trillion won) from the scheme, while proposing to share the proceeds with neighboring states to win their support.

According to the Wall Street Journal, Mohammad Baqer Qalibaf, speaker of the Iranian parliament and lead representative in end-of-war negotiations, said during a visit to Oman on Wednesday that "the management regime of the Strait of Hormuz will never return to its pre-war state." He made clear that once the 60-day period during which Iran agreed with the United States not to impose tolls has elapsed, Tehran intends to collect fees from passing vessels.

Iran is studying Turkey's practice of levying service charges on ships transiting the Dardanelles — an international waterway — as a model for its own toll framework. Under a treaty concluded in 1936, Turkey holds the right to charge vessels passing through the Dardanelles for services including lighthouse operation and maritime rescue.

To bring neighboring countries on board, Iran has proposed distributing a share of the toll revenue among them. The Iranian government estimates the fees could generate as much as $40 billion a year.

The international community has pushed back sharply. Secretary of State Marco Rubio, currently touring Gulf states in the Middle East, said "no country has the right to charge tolls for the use of an international waterway" and called such a condition "unacceptable in any agreement."

Oman, which shares the Strait of Hormuz with Iran, also opposes the proposed toll. Muscat said it would work with the International Maritime Organization to operate a free temporary route along its coast that allows ships to reach the Persian Gulf without passing through the strait.

Experts say Iran's plan to borrow Turkey's precedent as justification for charging tolls lacks legal grounding. Turkey's authority to levy service fees on ships is an exceptional arrangement under a specific treaty. International law holds that naturally occurring straits — as distinct from artificially constructed canals — must be available for transit without charge. Iran is also a party to international conventions that prohibit the unilateral imposition of fees on vessels.

James Kraska, a professor of maritime law at the US Naval War College, told the Wall Street Journal that Iran would need the consent of all 176 member states of the International Maritime Organization to impose tolls. Given that the international community is already opposed to the idea, securing agreement from all 176 countries would be effectively impossible, Kraska said.


kate01@heraldcorp.com