Iran Demands Transit Fees for Strait of Hormuz Passage

TEHRAN (Azat TV) – Iran has implemented a new policy dictating passage through the strategically vital Strait of Hormuz, requiring approved vessels to pay transit fees and undergo vetting by the Islamic Revolutionary Guard Corps (IRGC). This selective approach marks a significant shift in maritime control over the chokepoint, impacting global energy and trade routes. Several governments, including India, Pakistan, Iraq, Malaysia, and China, are reportedly in direct discussions with Tehran to arrange safe passage for their shipping. At least nine ships have utilized a designated “safe” corridor, routed near Iran’s Larak Island, where visual checks are conducted by the IRGC Navy and port authorities, according to sources familiar with the transits. This controlled transit system has been established as part of a broader escalation in Iran’s posture, signaling a move from defensive strategies to increased assertiveness in the region.

Iran’s Controlled Transit Corridor

The IRGC has established what is described as a nascent ship registration system for “approved” vessels, allowing for agreed-upon safe passage. This system involves routing ships through Iranian territorial waters via Larak Island, where they are visually inspected. While this corridor is presented as a measure for approved transits, overall traffic through the Strait of Hormuz remains significantly diminished. Data from mid-March indicates only about 15 transits, with approximately 90% of this activity linked to Iran through trade or ownership. This controlled access framework, rather than a complete closure, allows for specific cargo types, including energy shipments to China, agricultural goods, and select LPG movements, to pass under Iran’s terms. This permission-based access is a key element of Iran’s strategy to consolidate control over the vital waterway.

Shifting Global Energy Dynamics

The Strait of Hormuz’s reduced accessibility has had a profound impact on global energy flows, particularly diverting traffic to the Red Sea port of Yanbu. Crude exports from Yanbu have surged to approximately 3.4 million barrels per day, more than double pre-conflict levels, though still short of the port’s full loading capacity. This surge has led to astronomical profits for tanker owners willing to navigate the associated risks. The East-West Pipeline, which feeds Yanbu, has a capacity of 7 million barrels per day, making it a critical alternative conduit for Middle East Gulf crude exports. In parallel, drone attacks on the UAE’s port of Fujairah have caused a sharp decline in its loading volumes, further disrupting tanker operations and prompting a broader rethink of shipping routes and risks in the region.

Escalation and Demands

The IRGC’s actions and warnings indicate a broader shift towards increased aggression. Reports suggest Iran has moved from a strategy of “regional defense” to one of heightened assertiveness. This includes intensified strikes on energy infrastructure in Gulf states and threats to retaliate against Israeli power plants if its own electricity sector is targeted. Furthermore, Iran has warned that attacks on its southern coast could lead to the laying of sea mines, effectively cutting off Gulf routes. The IRGC has also reiterated that non-belligerent states can only pass through the Strait of Hormuz by coordinating with Iran. Beyond transit fees, Iran is also reportedly demanding firm guarantees against the restart of conflict, an end to Israeli attacks on Hezbollah, the closure of U.S. military bases in the Gulf, and financial compensation for war damages.

The establishment of a fee-based transit system for the Strait of Hormuz highlights Iran’s strategic intent to leverage its geographic position for economic and political leverage amidst heightened regional tensions. This development underscores a growing trend of state actors seeking to control and monetize critical international maritime passages, potentially setting new precedents for global trade and security.