Iran to impose service fees on Strait of Hormuz shipping, with 'special' treatment for friendly countries

Iran's ambassador to Beijing, Abdolreza Rahmani Fazli, announced on Saturday that the country will impose service fees on vessels transiting the Strait of Hormuz, while offering preferential terms to nations that supported Tehran during the recent conflict. The plan, unveiled at the World Peace Forum, was immediately rejected by Washington, adding a new layer of uncertainty to ongoing peace negotiations.

The announcement

Speaking at the forum, Fazli said Iran considers the strait part of its territorial waters and will "certainly impose service fees." He rejected the term "toll," describing the charges as covering security guarantees, transit supervision, and environmental mitigation for the heavy ship traffic.

These new arrangements will concern guaranteeing the security of transit through the Strait of Hormuz, supervising the passage of ships... as well as taking into account the environmental consequences of the massive number of boats.

The ambassador added that countries that "stood by us during difficult times" would receive special treatment, though he did not specify which nations qualify.

We will certainly consider special treatment for countries that have shown themselves friendly and have particularly stood by us during difficult times.

From blockade to negotiations

The Strait of Hormuz, a chokepoint for roughly one-fifth of global oil and natural gas, was largely blocked after US-Israeli strikes on Iran on 28 February. The blockade sent energy prices soaring. A framework agreement signed on 17 June lifted the blockade and allowed commercial ships to pass without fees for 60 days, but the arrangement left the post-period rules undefined.

Negotiations for a permanent settlement are still underway. The initial accord was brokered with Omani mediation, and Fazli confirmed that Iran is now working "in collaboration and cooperation" with Oman on the new transit arrangements.

Washington's opposition

The United States has rejected the idea of Iranian-imposed fees. The framework agreement's 60-day free-transit window expires in mid-August, and the two sides have not agreed on what follows. The fee proposal signals Iran's intent to leverage its geographic position as talks continue.

What's at stake

In peacetime, the strait carries a fifth of the world's oil and natural gas. Any disruption or new cost structure could affect global energy markets. The earlier blockade demonstrated the strait's vulnerability, and the prospect of permanent fees adds a long-term cost for shippers.