Iran Imposes Fees for Safe Passage Through Strait of Hormuz Amidst Rising Tensions

Amidst the ongoing conflict between the United States, Israel and Iran, Tehran is implementing a new system for vessels transiting the Strait of Hormuz, a critical waterway for global oil shipments. This includes a “safe maritime corridor” requiring payment for passage, signaling a shift towards a selective blockade of the strategic strait.

Strait of Hormuz: A Vital Chokepoint

The Strait of Hormuz, connecting the Persian Gulf and the Gulf of Oman, is one of the world’s most important maritime routes. Approximately one-fifth of the world’s oil supply passes through the strait daily . Disruptions to traffic through the strait have significant repercussions for global energy markets, as evidenced by a surge in oil prices following the outbreak of the recent conflict.

From Blockade Threats to Paid Passage

Initially, Iran’s Islamic Revolutionary Guard Corps (IRGC) threatened to “set ablaze” any vessels attempting to transit the strait . However, Iranian Foreign Minister Abbas Araghchi later indicated a more nuanced approach, stating the strait was “open, but closed to our enemies” . This shift has led to the development of a vetting and registration system managed by the IRGC.

The “Safe Maritime Corridor” and Associated Fees

Iran has established a “safe maritime corridor” within its territorial waters, requiring commercial vessels to undergo verification, registration, and payment to ensure safe passage. Reports indicate that fees for transit can reach approximately $2 million per vessel . Vessels are expected to provide detailed information regarding ownership and cargo destination to the IRGC prior to transit .

Negotiations and Approved Vessels

Several countries, including India, Pakistan, Iraq, Malaysia, and China, are reportedly engaged in direct negotiations with Iranian officials to secure safe passage for their vessels . As of March 17, 2026, at least nine vessels have successfully transited the new corridor . Pakistani and Indian-flagged vessels have been among those granted passage .

Impact on Global Shipping

Traffic through the Strait of Hormuz has decreased by 95 percent since the start of the conflict . Some ships have resorted to turning off their automatic identification systems (AIS) or broadcasting Chinese credentials to Iranian authorities in an attempt to navigate the strait . However, international trade and maritime law expert Alex Mills notes that the new registration system may not be economically viable in the long term due to insurance concerns, security risks, and existing sanctions . The adjustments to shipping routes and schedules are already impacting global supply chains.