Iran plans to charge insurance fees to vessels in Hormuz after US deal expires
Iran plans to charge insurance fees to vessels in Hormuz after US deal expires Submitted by MEE staff on Fri, 06/19/2026 - 17:19 Iran lays the groundwork for a new transit system in critical waterway, but will need Oman's buy-in to shore up legal defence Cargo ships are pictured off the coast of the Khor Fakkan container terminal, the only natural deep-sea port in the region and one of the major container ports in the emirate of Sharjah, along the Gulf of Oman, on 19 June 2026 (AFP) Off Iran wants to collect an “insurance fee” from vessels transiting the Strait of Hormuz after the 60-day agreement with the US expires, according to multiple media reports. The fee would effectively allow Iran to cement its sovereignty over the Strait of Hormuz, but would likely require the cooperation of neighbouring Oman, whose territorial waters border Iran’s. Iran agreed not to charge any fees in the waterway during the 60-day ceasefire with the US, termed the Islamabad Memorandum of Understanding, but the agreement left open the possibility of a new system afterwards. Tehran’s newly created Persian Gulf Strait Authority circulated a letter within the shipping industry that appears to lay out plans to charge a fee once the 60-day window passes. “This insurance is provided free of charge to the vessel owner, with all expenses covered by the Islamic Republic of Iran,” the letter said, according to Lloyd’s List, a maritime intelligence publication. (adsbygoogle = window.adsbygoogle || []).push({}); “The PGSA reserves the right to introduce insurance fees in the future… Owners will then be required to purchase and renew coverage accordingly,” the statement added. The statement also lays out the route vessels must take to transit Hormuz, passing by Iran's Larak Island. “Any deviation… is strictly prohibited and will be treated as a violation,” the PGSA warned. The PGSA added that it is now responsible for processing transit applications and issuing permits. It reserved the right to “enforce penalties, revoke passage permissions, or take further legal action” for non‑compliance. (adsbygoogle = window.adsbygoogle || []).push({}); The PGSA has been sanctioned by the US. Shipping industry reaction The shipping industry is divided on the topic of paying fees to transit the Strait of Hormuz. Greek shipping mogul Evangelos Marinakis sparked controversy when he said earlier this month that he is prepared to pay Iran a transit fee to keep the Strait of Hormuz open. He said the fee would help compensate Iran for “damage” inflicted by the US-Israeli war on the Islamic Republic. "I would prefer to pay a toll for the right to navigate through the Strait of Hormuz immediately and safely, rather than pay huge extra war risk premiums,” he said in a statement shared with Middle East Eye. 'From outlier to trailblazer': How Oman offers a glimpse into the post-war Gulf Read More » Most western ship owners and maritime groups adamantly oppose any fee. Greek Prime Minister Kyriakos Mitsotakis told The Financial Times in May that Iran should not impose a toll in the waterway. Greek families dominate global shipping and Greek vessel owners control about 20 percent of the world’s fleets. George Procopiou, another major ship owner, has publicly opposed paying fees, but his company, Dynacom, was one of the few that sent vessels through the Strait of Hormuz amid the war and was widely understood to have paid Iran transit fees in Chinese yuan, MEE reported. The Strait of Hormuz is just 21 nautical miles wide at its narrowest point and comprises Oman and Iran’s territorial waters. According to the United Nations Convention on the Law of the Sea (UNCLOS), countries are generally prohibited from charging tolls even in their territorial waters, which are considered sovereign territory. However, legal experts tell MEE that Iran can cite a range of cases to justify charging fees. Why Oman is key to any fee For example, Australia imposes a mandatory pilotage fee on vessels transiting the Torres Strait, which it shares with Papua New Guinea, because the waterway is so dangerous to navigate. (adsbygoogle = window.adsbygoogle || []).push({}); Likewise, under the 1936 Montreux Convention, Turkey charges a tonnage fee on vessels passing through the Bosphorus and the Dardanelles, which goes towards safety, rescue, and environmental services. Iran’s call to charge an “insurance fee” would be a workaround to the idea of a “toll” and could be legally justified, experts say. 'Game on’: How Iran can exact a toll in the Strait of Hormuz Read More » But Oman’s buy-in is critical because if Muscat opposes the move, it could theoretically open its territorial waters to vessels, allowing them to bypass Iran, which would have to resort to resuming attacks on international shipping to control the strait. Trump threatened to “blow up” Oman earlier this month out of anger that the Gulf state did not renounce Iran’s call to join it in charging a toll, MEE revealed. Omani officials have suggested in private that they might be open to charging a fee in the Strait of Hormuz under the terms of UNCLOS. “Oman has no objection to international commercial vessels navigating through the Iranian side of the Strait of Hormuz. However, if geopolitical or security circumstances require vessels to alter course and transit through Oman’s territorial waters, Oman has a sovereign responsibility to ensure that such passage is safe, orderly, and environmentally responsible,” Zakaria al-Muharrmi, an Omani commentator, wrote on X, in response to a US threat to sanction Oman if it engaged in tolling. “Under the UN Convention on the Law of the Sea, coastal states may also impose charges for specific services rendered to passing vessels,” he added. War on Iran News Post Date Override 0 Update Date Mon, 05/04/2020 - 21:19 Update Date Override 0