Iran Won’t Charge Tolls, But Will Impose Service Fees

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According to a report from The New York Times, on June 15th local time, regarding the Strait of Hormuz, Iranian Foreign Ministry Spokesperson Baghaei stated that Iran “is not seeking to impose tolls, but will charge for the services provided.”

The report notes that it remains unclear what services Iran intends to offer, but no such fees existed prior to the recent U.S.-Israeli conflict with Iran. Previously, Iranian officials had suggested that environmental-related fees might be imposed.

Under international law, charging tolls is considered illegal, but charging for services provided is permissible.

It is understood that the idea of requiring ships to pay for passing through the Strait of Hormuz was first proposed on February 28th, following a U.S.-Israeli attack on Iran and Iran’s retaliatory strikes on commercial vessels in those waters. In March, Iranian officials stated they would begin charging ships transiting the strait. In May, Iran established the Persian Gulf Strait Authority, stating it would be responsible for managing “safe passage permits.” That same month, it was reported that Iran discussed with Oman the creation of a permanent fee mechanism for vessels navigating the Strait of Hormuz.

This has raised concerns among world leaders that the Strait of Hormuz may never return to its pre-war state. On June 15th local time, French President Emmanuel Macron stated, “We defend international law and will do everything to ensure that no tolls are imposed on this waterway.”

In a separate development, according to CNBC, on June 15th local time, U.S. Vice President Vance stated that the anticipated U.S.-Iran memorandum of understanding would keep the Strait of Hormuz open long-term without imposing tolls, which are precisely the details that need to be confirmed in the upcoming technical-level negotiations.

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