Testing the Waters
Iran has threatened to charge a toll for passage through the Strait of Hormuz, unsettling global shipping and prompting other countries to consider similar plans. The idea has raised questions about freedom of transit and the potential leverage of countries bordering vital straits.
Iran's threat to charge a toll for passage through the Strait of Hormuz has unsettled global shipping. The idea has prompted Indonesia's finance minister to consider imposing tolls on ships passing through the Malacca Strait. Few observers expect a toll in the Malacca Strait, but Iran's proposed fee has shifted how companies and countries think about vital straits around the world. Historically, strait countries have levied tolls, such as the Ottoman sultans on ships entering the Dardanelles and the Danish Sound dues. The 1982 United Nations Convention on the Law of the Sea codified free navigation of straits, but Iran is not a party to the convention. The potential for a toll on the Strait of Hormuz has gained traction, and could set a precedent for other straits globally.
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