Reports that Iran is planning to charge ships a toll to traverse the Strait of Hormuz are raising concerns about the potential economic impact on oil and fuel prices.
Iran’s Islamic Revolutionary Guard Corps “has imposed a de facto ‘toll booth’ regime in the Strait of Hormuz, requiring vessels to submit full documentation, obtain clearance codes and accept IRGC-escorted passage through a single controlled corridor,” analysts from Lloyd’s List Intelligence said in a recent report. At least two vessels have paid fees in Chinese yuan, according to the provider of maritime research.
For now, Iran has not officially implemented a toll for the strait, which would be unprecedented. But Tehran indicated this week that, under a long-term peace deal to reopen the strait, it would charge vessels a fee to guarantee safe passage, Reuters reported.
In a Truth Social post on Thursday, President Trump warned Iran not to impose a toll on the vital conduit, which links the Persian Gulf to multiple trade routes. “There are reports that Iran is charging fees to tankers going through the Hormuz Strait — They better not be and, if they are, they better stop now!” he wrote.
Analysts with investment adviser Capital Economics said in a report that an Iranian toll on ship traffic would give the country “de facto control over a critical artery for energy trade and introduce a new source of geopolitical risk to the world economy.”
The Strait of Hormuz, which normally accommodates roughly 20% of the world’s oil and liquefied natural gas supply, remains virtually sealed, with tankers unwilling to risk passing through the narrow waterway. While more than 100 ships per day ordinarily cross the strait, in March an average of only six vessels made the trip, while this month crossings have averaged about 10 per day, according to data from Marine Traffic.
Global oil prices, which traded at between $65 and $73 per barrel just before the war began on Feb. 28, hovered just above $95 on Friday.
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