Iran, which reached an agreement to end the war with the United States, said it would collect "fees" for certain services in the Strait of Hormuz instead of a "toll," which has drawn strong pushback from the international community. Because charging a toll is illegal under international law while fees for some services can be allowed, attention is on Iran's next steps.
On the 15th (local time), Iran's Fars News Agency, citing an anonymous source, reported that the final draft of the memorandum of understanding (MOU) to end the war specifies that "future maritime navigation services in the Strait of Hormuz will be managed by Iran and Oman." The source claimed that the inclusion of the term "maritime services" means the United States has officially recognized Iran's authority to collect fees.
According to the New York Times (NYT), Iran Foreign Ministry Spokesperson Esmail Baghaei also said that day, "We do not intend to impose a toll, but we will collect a fee in return for services provided." As U.S. President Donald Trump said the Strait of Hormuz would be opened "toll-free" as before the war, Iran effectively put forward service fees instead of a toll.
Iran, which had said early in the war that it would impose a toll on ships transiting the Strait of Hormuz, began emphasizing the concept of "service fees" last month. At the time, Press TV, Iran's state-run external outlet, reported that Iran had established a new system to control maritime traffic through designated routes and to charge for "special services."
Iran has not disclosed the specifics of the special services to be provided in the Strait of Hormuz. However, it is generally known that ports can charge for certain services such as waste disposal or navigational support. In man-made waterways like the Panama Canal and the Suez Canal, coastal states provide various services, and ships pay for them.
Tolls and fees charged as compensation for actual services provided differ legally in nature. The NYT, citing maritime law experts, reported that "fees may be legal in certain circumstances, but imposing a toll in the Strait of Hormuz is illegal."
However, international law has no provision allowing a coastal state to charge ships transiting a naturally formed international strait like the Strait of Hormuz any tolls or fees. Merchant ships passing through the Strait of Malacca or the Taiwan Strait also do not pay separate charges to coastal states.
Among experts, the prevailing view is that it will also be practically difficult for Iran to actually collect service fees. James R. Holmes, a professor of maritime strategy at the U.S. Naval War College, said, "Because international law has no rule allowing a coastal state to charge ships transiting a natural strait a toll, the essence is the same whether you call it a toll or a fee," adding, "The Strait of Hormuz is a natural waterway, and as far as I know the only service for which Iran could bill is not attacking ships."
Previously, James Kraska, a professor of international maritime law at the U.S. Naval War College and a visiting professor at Harvard Law School, also told the NYT, "Iran is slyly trying to wedge its proposal into a legal framework," criticizing, "Calling the effective imposition of charges on a waterway that has long been free 'charges for service' is almost the same as the mafia demanding protection money."
The NYT noted that if Iran were to charge ships in the Strait of Hormuz—through which about 20% of the world's seaborne crude passes—under the pretext of specific services, international shipping costs and administrative burdens could increase. It added that this could set a dangerous precedent undermining freedom of navigation on the high seas.