Iran Strait Toll Move Challenges International Maritime Law

Iran Strait Toll Move Challenges International Maritime Law

Why in the News ?

Iran’s reported decision to impose a toll on ships passing through the Strait of Hormuz has sparked global concern, with the U.S. and other nations arguing that it violates UNCLOS provisions and threatens freedom of navigation and global energy security.


Issue: Iran’s Toll Proposal and Legal Concerns

  • Iran has proposed charging nearly $2 million per vessel for transit through the Strait of Hormuz.
  • The move is criticised as a violation of the United Nations Convention on the Law of the Sea (UNCLOS).
  • Article 38 of UNCLOS guarantees the right of transit passage through international straits.
  • Article 44 mandates that such passage must not be impeded by coastal states.
  • The Strait lies between Iran (north) and Oman (south), with overlapping territorial waters (~21 nautical miles wide).
  • Despite sovereignty, coastal states cannot restrict continuous and expeditious navigation.
  • Iran has also reportedly created an IRGC-controlled shipping corridor, limiting access to “approved vessels”.

Implications: Energy Security and Global Trade

  • The Strait handles nearly 20% of global oil and gas supplies, making it a critical energy chokepoint.
  • Imposing tolls or restricting passage can disrupt global energy markets, increasing oil, LPG, and LNG prices.
  • Such actions undermine freedom of navigation, a cornerstone of global maritime trade.
  • Raises concerns of precedent-setting, where other countries may impose tolls on strategic waterways.
  • Even countries like India, dependent on Gulf energy imports, are directly affected.
  • Disruptions can lead to market volatility, inflation, and economic slowdown globally.
  • Highlights growing use of geopolitical leverage through maritime chokepoints.

About UNCLOS & Strait of Hormuz :

●      UNCLOS (1982): International treaty governing maritime rights, navigation, and territorial waters.

●      Transit Passage: Right of ships and aircraft to move freely through international straits.

●      Conditions: Passage must be continuous, expeditious, and comply with international safety norms.

●      Strait of Hormuz: Connects Persian Gulf to Gulf of Oman, vital for global energy trade.

●      Managed partly through the Traffic Separation Scheme (TSS) by the International Maritime Organization (IMO).

●      Customary International Law: Even non-ratifying states (like Iran) are bound by widely accepted practices.

●      Importance: Ensures uninterrupted global trade, maritime stability, and energy security.