Hawzah News Agency- In this analysis, we examine a key question: Are the charges applied to the Strait of Hormuz considered tolls for passage, or fees for actual services rendered?
Legal basis for navigation service fees in the Strait of Hormuz
As the only maritime link between the Persian Gulf and international waters, the Strait of Hormuz is central to world energy shipments. Its narrow shipping lanes and heavy traffic demand ongoing navigation safety and environmental protection measures by the coastal state—Iran.
Under international law, a coastal state has sovereign rights over its territorial waters, including the authority to enforce safety, environmental, and traffic management regulations. While foreign vessels enjoy the right of “innocent passage,” this right does not prohibit the imposition of necessary rules to maintain safety and environmental standards. Charging fees for such services does not nullify maritime freedoms or block passage—it ensures those freedoms can be exercised safely and sustainably.
Distinguishing tolls from service fees
Article 18 of the 1958 Convention on the Law of the Sea and Article 26 of the 1982 UN Convention on the Law of the Sea (UNCLOS)—both reflecting established customary international law—clearly distinguish between “transit tolls” and “service fees.”
A coastal state may not levy charges simply for a vessel’s passage through its territorial sea. However, it is fully entitled to demand payment for specific, actual services provided. This distinction is widely accepted in legal literature and applies even to states that have not ratified UNCLOS 1982—such as Iran—based on the 1958 Convention and customary law.
Global precedents
Similar straits offer useful comparisons. The Bosphorus and Dardanelles straits, though natural waterways, operate under the Montreux Convention, which grants Türkiye the right to collect fees for navigation safety and pilotage services.
Another example is the St. Lawrence Seaway, where official tolls are collected because significant parts of the route rely on engineered infrastructure. These cases show that charging for services in natural waterways is accepted practice, while pure transit tolls are legally justifiable only for artificial canals.
What services can Iran charge for?
In the Strait of Hormuz, the coastal state (Iran) may seek compensation for services it actually provides, including:
- Maritime security and vessel traffic management
- Pilotage and navigational guidance
- Search and rescue operations
- Oil pollution control and response
- Radar and early warning systems
These services are expensive to maintain. International law does not require the coastal state to cover the heavy costs of foreign vessels’ safety from its national budget.
Three conditions for legal compliance
To avoid legal objections, any fee system must meet three clear conditions:
- Transparency and proportionality – Fees must reflect real operational costs.
- Non-discrimination – Charges must apply equally to all vessels in similar circumstances.
- Clear labeling – National regulations and international notices must explicitly state that payments are “service fees,” not “transit tolls.”
Conclusion
Based on the principle of coastal state sovereignty, customary international law, and Articles 18 of the 1958 Convention and 26 of UNCLOS 1982, Iran is legally entitled to charge passing vessels for navigation, safety, and environmental services in the Strait of Hormuz—provided the fees are transparent, non-discriminatory, and clearly designated as service fees.
Source: Center for Studies and Answering Doubts of Seminaries (Qom)
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