Shipping analyst says Iran’s de facto ‘toll booth’ system in the Strait of Hormuz is Trump’s major accomplishment regarding Iran

(SeaPRwire) –   Iran seems to be positioning itself as the guardian of the Strait of Hormuz, the world’s most vital route for oil transportation. This action could solidify Tehran’s de facto control over the critical water passage and establish its capacity to ensure its own oil continues flowing to China.

Communications from Iran to the United Nations maritime body and the experiences of ships traversing the strait indicate the emergence of what resembles a “toll booth system.” Vessels are required to enter Iranian territorial waters and undergo screening by Iran’s Islamic Revolutionary Guards Corps. At least two ships have paid to pass through.

Ship traffic through the strait has dropped by 90% since the onset of the Iran war, causing global oil prices to surge sharply and leading to severe shortages in Asian nations that rely on oil transported from Persian Gulf countries through the strait.

Since March 1, only around 150 vessels—including tankers and container ships—have traversed the strait, according to shipping data firm Lloyd’s List Intelligence. This figure is just slightly more than the typical daily traffic before the war. Data from analytics firm Kpler shows that Iran’s Kharg Island terminal loaded 1.6 million barrels in March, largely unchanged from pre-war monthly averages. Most buyers are small, private refineries in China that disregard U.S. sanctions.

The majority of ships that have navigated the strait in recent weeks were heading east, out of the Gulf. By ownership or flag registration, Iran-linked ships made up 24% of transits, Greek ships 18%, and Chinese ships 10%. However, closer analysis reveals that Iran-connected vessels accounted for 60% of transits during the early stages of the war, and in recent days, approximately 90%.

Nearly half of the vessels turn off their radio identification systems—used to track their location—before entering the strait, reappearing on the other side in the Gulf of Oman. Their caution is not without reason. The U.N.’s International Maritime Organization, which monitors maritime security, reports that at least 18 ships have been attacked and at least seven crew members killed. The organization did not specify which country carried out the attacks.

Lloyd’s List says tolls are paid in yuan, China’s currency

“Iran’s IRGC has imposed a de facto ‘toll booth’ system in the Strait of Hormuz,” states shipping data firm Lloyd’s List Intelligence.

Normally, ships use a two-lane shipping channel in the middle of the strait. But increasingly, vessels are taking an alternative route north around Larak Island, placing them within Iran’s territorial waters and closer to the Iranian coast.

Entities seeking safe passage for their ships must submit details—including cargo, owners, destination, and a full crew list—to what Lloyd’s List Intelligence terms “approved intermediaries” of the Revolutionary Guard. Approved vessels receive a code and are escorted by an IRGC ship. Oil tankers are prioritized, and vessels undergo “geopolitical vetting,” according to Lloyd’s.

“While not all ships are paying a direct toll, at least two have, with payments settled in yuan,” Lloyd’s List noted, referring to China’s currency.

Some ships have reportedly been allowed through following diplomatic intervention. Lloyd’s mentions that two Indian vessels carrying liquid petroleum gas have successfully passed through.

Iran appears to be setting up a permanent system

On Tuesday, the IMO received a letter from the Iranian government stating it “has implemented a series of precautionary measures to safeguard maritime safety and security.” The letter claimed Iran’s actions comply with principles of international law.

Local media reports indicate Iran’s parliament is working on legislation to formalize fees for certain ships transiting the Strait of Hormuz.

Fars and Tasnim news agencies—both close to Iran’s Revolutionary Guard—quoted lawmaker Mohammadreza Rezaei Kouchi as saying, “Parliament is advancing a plan to legally enshrine Iran’s sovereignty, control, and oversight of the Strait of Hormuz, while also generating revenue through fee collection.”

The IMO has condemned attacks on vessels and called for an internationally coordinated effort to secure strait passage that respects freedom of navigation.

An Emirati oil executive calls Iran’s chokehold ‘economic terrorism’

The remarks by Sultan al-Jaber, head of the massive state-owned Abu Dhabi National Oil Co., reflect the hardening stance of the United Arab Emirates as the war approaches its one-month mark.

“Weaponizing the Strait of Hormuz is not an act of aggression against a single nation,” al-Jaber said in a speech at an event hosted by the Middle East Institute in Washington.

“It is economic terrorism against every consumer, every family dependent on affordable energy and food. When Iran holds Hormuz hostage, every nation pays the price—at the gas station, the grocery store, and the pharmacy,” he added. “No country should be permitted to destabilize the global economy in this manner.”

Iran’s approach may violate international law

Article 19 of the U.N. Law of the Sea Treaty mandates that countries allow “innocent passage” of peaceful, law-abiding vessels through their territorial waters.

“There is no international legal provision permitting the establishment of a toll booth to extort shipping… This is Iran leveraging its current advantage: control of the Strait of Hormuz,” said Sal Mercogliano, a maritime historian at North Carolina’s Campbell University.

Jasem Mohamed al-Budaiwi, secretary general of the Gulf Cooperation Council, stated that Iran’s fee collection for passage “constitutes aggression and violates the U.N. Law of the Sea Convention.”

Such payments likely violate U.S. and European sanctions targeting the Guard, a key power center in Iran that controls its ballistic missile arsenal and played a major role in quashing nationwide protests in January.

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Gambrell contributed from Dubai, United Arab Emirates.