The Strait of Hormuz is a narrow waterway connecting the Persian Gulf to the open ocean, through which nearly a fifth of the world's petroleum transits. Any disruption to shipping there quickly affects global oil prices and supply chains.
The IMO's position is rooted in the United Nations Convention on the Law of the Sea, which ensures unimpeded transit passage through international straits. Imposing a unilateral toll would contravene these long-established norms and risk destabilizing the global energy market.
The Strait, which narrows to just 33 kilometers at its most constricted point, has long been a geopolitical flashpoint. Iran has periodically threatened to close it during past confrontations, and the June 17 agreement represented a brief respite. However, the resumption of attacks has heightened insurance premiums for vessels and raised concerns about alternative shipping routes.
The Legal Dispute
The IMO made its position clear Monday. "There is no legal basis through which to introduce mandatory tolls simply to transit through a strait," an IMO spokesperson said. "We have always been consistent on our stance on fees - IMO stands firmly against charging fees for passage through straits used for international navigation."
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James Kraska, a maritime law specialist from the U.S. Naval War College, holds the same opinion. He states that imposing fees for passage through the Strait of Hormuz breaches international law, and that all nations possess an unrestricted right to navigate the waterway. Furthermore, Kraska argued that no country, including Iran, can single-handedly alter established shipping lanes in Hormuz, as this would violate the IMO conventions and the Safety of Life at Sea treaty.
The Escalating Crisis
The conflict extends beyond legal arguments. Over the past week, Iran has struck several merchant vessels traveling through the Strait and insisted that vessels must take a northern path within Iranian territorial waters. As a response, the U.S. Navy has been guiding vessels along a southern route adjacent to Oman's coast. President Trump ordered the Navy to reimpose a blockade of Iranian ships.
"The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran," Trump said. "We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran's ships or customers from entering or leaving. All other countries will have fair and open use of the Strait."
Herbjorn Hansson, CEO of tanker company Nordic American Tankers, informed CNBC that his firm won't dispatch any vessels to traverse the Strait of Hormuz again. "Iran is suffering, America is suffering, 192 countries outside the Hormuz Strait are suffering," he said.
Hansson further stated he considers the proposed 20% levy impractical. He added that Washington and Tehran must reach a consensus on managing the Strait.
What to Watch
In retaliation for the attacks on vessels, the United States has conducted several rounds of airstrikes targeting Iranian positions. In turn, Tehran has opened fire on American allies in the Gulf.
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