Iran’s government has officially kicked off the drafting process for a new set of rules on “Environmental Service Fees” in the Strait of Hormuz. The initial draft is ready, but the exact toll rates and collection methods are still up in the air.
Word on the street from maritime security operators is that bulk carriers might face tolls up to $120,000 per trip, while tankers could pay as much as $160,000. The exact price tag depends on the vessel type, cargo, and the shipowner’s nationality. Still, that’s a massive drop from the early days of the conflict, when fees routinely hit $1 to $2 million.
The Strait of Hormuz links the high seas with exclusive economic zones, making it a textbook international waterway. Under the UN Convention on the Law of the Sea, coastal nations aren’t supposed to just slap on random restrictions or tolls.
As of April 2026, more than 168 countries and entities have signed off on the UN Convention, including heavyweights like China, Russia, Japan, and India. Iran, however, hasn’t formally ratified it, which is why they argue they aren’t bound by “transit passage” rules. Interestingly, the U.S. hasn’t ratified it either.
Back on March 30, Iran’s Parliamentary National Security Commission actually passed a bill to charge vessels passing through the strait. The plan calls for all financial arrangements and toll collections to be handled in Iranian rials, while firmly keeping the Islamic Revolutionary Guard Corps and other armed forces in the driver’s seat.
Just last month, Tehran announced the creation of a brand-new agency to manage the waterway: the Persian Gulf Strait Administration. A social media account with the exact same name went live that very day, claiming official status and promising to drop real-time updates on everything happening in the Strait of Hormuz.
The account is jointly run by Iran’s Supreme National Security Council and the Navy of the Islamic Revolutionary Guard Corps. Meanwhile, Iran’s foreign ministry spokesperson noted on May 18 that Tehran is in ongoing talks with Oman to figure out a smooth passage mechanism for the strait.
Squeezed between Iran and Oman, the Strait of Hormuz is the only maritime gateway from the Persian Gulf to the Indian Ocean. Even though the main deep-water channel sits almost entirely within Oman’s territorial waters, Iran effectively holds the keys to the kingdom.
Early leaks suggested that the core rules of the “Persian Gulf Strait Administration” would include collecting “security transit fees” from passing ships, payable strictly in local currency. Every commercial and civilian vessel would need to hand over detailed paperwork in advance, covering shipowner details, crew nationalities, cargo manifests, and exact routes. On top of that, Iran’s oversight would stretch down to the seabed, covering underwater pipelines and data cables.
Analysts point out that rolling out this agency officially marks Iran’s shift toward institutionalized control over the waterway. U.S. intelligence reports suggest Tehran is looking to funnel these service fees straight into post-conflict reconstruction efforts.
The U.S.-led offensive, which kicked off on February 28 this year, has now dragged on for a full 100 days. Instead of achieving the hoped-for regime change, it’s backfired, prompting Iran to choke off the Strait of Hormuz and send global energy prices soaring. Right now, hundreds of merchant vessels and roughly 20,000 crew members are still stuck idling in the Persian Gulf.
On May 6, China’s foreign ministry spokesperson stressed that tensions in the strait are running high, and the only real way to cool things down is to stop the fighting as soon as possible. The message was clear: coastal nations’ sovereignty and territorial integrity must be respected, regional concerns taken seriously, and the legitimate interests of the global community protected.
By the end of May, shipping fuel costs had already skyrocketed by nearly 70% due to the strait bottlenecks. Shipping companies are naturally passing these costs down the line to cargo owners, causing global container freight rates to keep climbing. If the waterway doesn’t reopen soon, the economic fallout is only going to get worse.
In its latest A-share strategy report, CITIC Securities highlighted that the biggest headache for investors right now is the crumbling assumption that the strait will reopen quickly. With inflation fears and tighter monetary policy expectations heating up, the firm argues that restoring navigation through the strait will be the crucial tipping point for a turnaround in non-AI sectors.
