Iran targets $40 billion annual toll from Hormuz Strait

Iran's Islamic Republic government aims to collect $40 billion annually in tolls from foreign commercial vessels using the strategic Strait of Hormuz, according to a report by The Wall Street Journal on Thursday, June 25.

Tehran's plan is for foreign vessels transiting the vital waterway to pay tolls to the Iranian government "to ensure their safety," the report said. Iranian officials have recently held several rounds of talks with six neighbouring Gulf countries — Saudi Arabia, Qatar, Kuwait, Oman, Bahrain and the UAE — and have promised to share the toll revenue with them.

The 167-kilometre narrow strait, which connects the Persian Gulf and the Gulf of Oman, is one of the world's most important commercial waterways, carrying approximately 20 per cent of the world's energy supplies.

Iran imposed a blockade on foreign vessels in the strait after the US launched strikes on Iran on February 28. During the blockade, the Iranian government stated that since the waterway falls within Iran's territory, foreign vessels must pay tolls to use it. A law to this effect was passed in Iran's parliament in March.

The US strongly opposed the decision and imposed a blockade on Iranian ports in retaliation.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf, during a recent visit to Oman, said the management of the Strait of Hormuz will "never return to its pre-war status."

US Secretary of State Marco Rubio, currently visiting Bahrain, warned Iran that imposing tolls on foreign vessels would create "total chaos" and a dangerous global situation. "The reality is that no country in the world has the right to impose tolls for the use of international waterways," Rubio said. He added that if the US accepts Iran's toll policy, other countries would follow suit, leading to global chaos.

Shipping through the strait has increased since the signing of the US-Iran agreement, with 70 vessels crossing in 24 hours on Thursday.