Iran has implemented a new "toll booth" system for vessels transiting the Strait of Hormuz, forcing ships to enter Iranian waters and be vetted by the Islamic Revolutionary Guard Corps. This new regime has caused a drastic reduction in traffic through the crucial waterway. Prior to the U.S.-Israeli strikes on Iran, about 135 ships passed through daily; however, between March 1 and March 25, only 116 transits occurred, a 97% drop compared to the same period in February, according to S&P Global. Lloyd's List Intelligence reported a similar decline, with traffic falling by 90% since March 1, and only about 150 vessels transiting since that date.
Under this new system, some ships have paid as much as $2 million to Iran for safe passage, according to Lloyd's List Intelligence. Alaeddin Boroujerdi, a senior Iranian parliament member, stated that any vessel passing through the Strait now pays a $2 million fee, claiming Iran could generate between $70 billion and $80 billion annually from these charges. Martin Kelly of EOS Risk Group noted that the approval process for passage involves government-to-government negotiations with Iran through embassies.
Iran's joint military command has warned that all oil tankers must use its approved routes or face a "forceful response," threatening any vessel that deviates from designated routes or disregards Iranian navigation protocols. The U.S. has cautioned against complying with Iran's controls. Johanna Hjalmarsson, a maritime law expert, clarified that while Iran, as a coastal state, can regulate traffic and suspend passage for security reasons, it cannot hamper "innocent passage" or discriminate against vessels from different states under the UN Convention on the Law of the Sea. However, Iran maintains that it has been too lenient in exercising its rights previously.
This tightening of control, dubbed "the Tehran toll booth," has seen traffic diverted through a narrow channel in Iranian territorial waters where the Islamic Revolutionary Guard Corps verifies ship information. While some ships linked to Chinese, Indian, or Gulf state owners have made the passage, including "dark fleet" vessels sanctioned by Western powers, the significant reduction in overall traffic indicates a major disruption to global energy supplies and maritime trade. Regional diplomats suggest that if Iran continues to whitelist or blacklist shipping, Gulf states may seek alternatives like building pipelines.
