Photo: Getty Images / Getty Images News / Getty Images
Iran is demanding transit fees from commercial ships passing through the Strait of Hormuz, a senior Gulf official confirmed Thursday (March 26), in what marks the first public accusation of its kind by a top regional leader.
Jasem Mohamed al-Budaiwi, secretary-general of the Gulf Cooperation Council (GCC), made the accusation during a news conference in Riyadh, Saudi Arabia. The GCC oversees a bloc of six Gulf Arab nations: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
The Strait of Hormuz is the narrow mouth of the Persian Gulf, one of the world's most critical shipping lanes. Under normal conditions, roughly 20% of all traded oil and natural gas passes through it daily, along with vast quantities of food, metals, and other goods.
Payments of as much as $2 million per voyage are being sought from some commercial vessels on an informal, case-by-case basis. Some ships have made the payment, though the currency used and exact mechanism remain unclear. The charges do not yet appear to be systematic.
People familiar with the matter told Bloomberg the payments have been handled quietly, and the uncertainty over which vessels may be targeted next is adding friction to an already strained shipping route. Only a small number of vessels have crossed the waterway since the broader regional conflict began roughly four weeks ago.
India, which managed to get four vessels carrying liquefied petroleum gas through the strait, pushed back sharply on Tuesday . Prime Minister Narendra Modi said international law guarantees freedom of navigation through the strait and that no nation can levy fees for its use. Modi also said he spoke with President Donald Trump about the conflict and its impact on the maritime corridor.
"Ensuring that the Strait of Hormuz remains open, secure and accessible is essential for the whole world," Modi wrote in a social media post.
For Gulf Arab nations, even an informal toll is deeply troubling. Saudi Arabia and the United Arab Emirates depend on the strait to ship their oil to global markets, though both countries are now reportedly relying on alternative pipelines that bypass Hormuz to reach their customers.
Iran has also floated the idea of formalizing the charges as part of a broader postwar settlement, according to Bloomberg. Last week, an Iranian lawmaker said parliament was advancing a proposal to require nations to pay Iran for using the strait as a secure shipping route. Iran's foreign ministry did not immediately respond to requests for comment, citing state-imposed restrictions on telecommunications and internet access.