Ceasefire Done, Can Iran Charge Toll From Ships In Strait Of Hormuz? What Maritime Law Says

Last Updated:April 08, 2026, 12:38 IST

The rules governing such waterways come from the United Nations Convention on the Law of the Sea

Even as a fragile ceasefire between Iran and the United States eases immediate tensions, a new flashpoint is emerging in the waters of the Strait of Hormuz.

According to Reuters, Iran, under the new ceasefire framework, will charge a $2 million fee from ships passing through the Strait of Hormuz. This will reportedly be a “controlled transit" system coordinated with the Iranian armed forces. A draft bill was approved by Iran’s Parliament on Tuesday to formalise the toll, with AP reporting that the revenue will go toward rebuilding the country following US and Israeli strikes.

The development has brought the spotlight on a crucial question: Can a country legally impose a toll on one of the world’s busiest oil routes?

Why Hormuz Is Different From Suez Or Panama

At first glance, charging a toll may not seem unusual. After all, both the Suez Canal and the Panama Canal levy transit fees on ships. However, there’s a key difference: These are man-made waterways, built, maintained, and controlled by specific countries.

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The Strait of Hormuz, by contrast, is a natural international strait and that changes everything.

What International Law Says

According to The Times of India, the rules governing such waterways come from the United Nations Convention on the Law of the Sea (UNCLOS).

Under this framework, ships and aircraft have the right to “transit passage" and this passage must be continuous and uninterrupted. It also says coastal states cannot block or suspend access. Most importantly, Article 26 explicitly prohibits charging fees simply for passage. Charges are only allowed if a country provides specific services (like pilotage, towing, or port assistance).

If Iran were to impose a toll, it would effectively turn a global shipping route into a controlled checkpoint, violating the principle of non-discriminatory access.

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Legal experts speaking to The Guardian argue this would undermine established maritime norms and trigger strong pushback from major trading nations.

Can Iran Implement It Anyway?

In practical terms, it would be extremely difficult.

The Strait is shared between Iran and Oman and is used by nearly 20 per cent of global oil shipments. For Iran to enforce a toll, it would need to physically monitor and control one of the world’s busiest sea lanes, risk confrontation with naval powers, and potentially disrupt global energy supplies. This also means any unilateral move could escalate tensions quickly.

Even signalling a toll system carries consequences—Markets react immediately to any threat to Hormuz, insurance and shipping costs spike, and naval deployments increase. That’s why most analysts see such proposals less as an economic policy and more as a strategic pressure tactic.

News explainers Ceasefire Done, Can Iran Charge Toll From Ships In Strait Of Hormuz? What Maritime Law Says

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