Hormuz Becomes a Holding Queue: Iran’s Toll Regime, Bilateral Carve-Outs, and a Bifurcating Strait

The Strait of Hormuz is witnessing a critical shift as Iran formalizes a transit-toll regime via the newly established Persian Gulf Strait Authority. Reports indicate that vessels, including six India-flagged ships, are facing demands for payments reaching $2 million per transit, settled via Chinese yuan or Bitcoin to IRGC-linked wallets. This development transforms the vital maritime chokepoint into a high-stakes holding queue, forcing shipping companies to navigate complex geopolitical risks while maintaining essential trade routes through the Persian Gulf.

These unauthorized transit levies challenge the freedom of navigation principles enshrined in UNCLOS Part III, which governs transit passage through international straits. From a compliance perspective, these demands complicate adherence to SOLAS Chapter XI-2 and the ISPS Code, as payments to non-state or sanctioned entities may trigger severe violations of international maritime security protocols. Classification societies and P&I clubs are now scrutinizing these financial transactions, as any deviation from established maritime law could jeopardize insurance coverage, vessel registration status, and regulatory standing under flag state requirements.

Masters and navigating officers must exercise extreme vigilance when approaching the Strait of Hormuz, as these toll demands create significant operational delays and security risks. Bridge teams should immediately report any solicitation for illicit payments to their DPA and relevant maritime security centers. Navigating officers must prioritize vessel safety and crew security, ensuring that all transit logs and communication records are meticulously maintained to support potential legal claims or insurance disputes arising from these forced financial interventions.