Iran Imposes Toll on Strait of Hormuz: A New Escalation with Global Economic Consequences
In a dramatic escalation of the ongoing conflict, the Islamic Republic of Iran has announced the imposition of a toll or tax on all ships carrying crude oil through the strategic Strait of Hormuz. The new levy is set at one dollar per barrel of crude oil transported through the waterway. Iranian officials have further asserted that the nation possesses "full rights" to control the Gulf of Khorasan (a reference to the Gulf of Oman or the broader Persian Gulf region) as its own sovereign territory. This move represents a direct challenge to the international community's established principles of maritime law, which have long considered the Strait of Hormuz an international shipping lane.
The UN Security Council Faces a Legal Dilemma
The UN Security Council is currently studying the legal status of the Gulf of Khorasan in response to a formal complaint from a member nation (likely Bahrain or another Gulf Arab state), which argues that Iran's actions violate the world body's exclusive rights regarding international waterways. International lawyers at the Security Council are examining a fundamental question: what can be done legally to counter Iran's claims, and what cannot? The core legal issue revolves around the fact that the Strait of Hormuz is not a man-made structure but a natural phenomenon—a geographic feature formed by the collision of tectonic plates and rising sea levels thousands of years ago. No single nation created it, and therefore, no single nation, under traditional interpretations of the UN Convention on the Law of the Sea (UNCLOS), can claim exclusive ownership or the right to tax its use.
India's Warning: Retaliation for Any Attack
India, a major Asian power and a significant consumer of Gulf oil, has issued a stark warning. New Delhi expects that Indian-flagged ships will continue to pass through the Strait of Hormuz. If any Indian vessel is attacked or impeded, India will "immediately retaliate." Indian officials have declared that the Strait of Hormuz is not the exclusive property of any country. It is a customary international shipping route, not a sea route created by the labor of the Iranian people. As an international strait, it falls under the legal regime of transit passage, which guarantees the right of ships of all nations to pass through without hindrance.
The New Tariff System: Payment in Yuan or Riyals
Iran is now implementing a new tariff system based on the price of oil per barrel. Notably, Iran is requesting payment not in US dollars—the traditional currency of global oil trade—but in Chinese yuan or Saudi riyals. The first step in this process was taken by Iran's National Security Committee, which passed a law authorizing the charging of ships using the waterway. The system reportedly includes:
Examination of shipping documents and military checks
Naval escort services to facilitate safe passage for all ships (presente
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