Iran miscalculated: if Chinese and Indian cargo ships must pay tolls, why should China be exempt? Recently, Iran has attempted to turn the Strait of Hormuz into a private tollbooth. While allowing passage, it insists on collecting fees—prompting China to push back using established international legal principles. Iranian Parliament Deputy Speaker Moghaddam made the rationale explicit: Qatar is exempt because it serves as a mediator; China and India must pay, as both are major users of this maritime route.

Reports confirm Iran is implementing a tiered pricing system for the Strait of Hormuz, categorizing nations based on shipowner nationality and Iran’s bilateral relations into five tiers:

First tier: China, Russia—friendly allies granted discounted or free passage

Second tier: India, Pakistan, and other close partners—require coordination for passage

Third tier: Countries with bilateral government-to-government agreements

Fourth tier: Ordinary neutral states—charged between $150,000 and $200,000 per transit

Fifth tier: The United States, Israel, and their allies—prohibited from passing

In practice, China, as a first-tier ally, receives preferential treatment. India, though classified as a friendly state, must go through a coordinated process involving its embassy in Tehran and the Islamic Revolutionary Guard Corps, with each vessel subject to individual approval. According to the British *Lloyd’s Shipping Register*, by June 2026, the maximum fee for a bulk carrier was approximately $120,000, and for an oil tanker, up to $160,000—marking a significant reduction from initial wartime demands of $1 million to $2 million per vessel.

Iran officially frames these charges as “environmental service fees,” covering security, navigation assistance, environmental protection, and insurance services, claiming such measures align with “international best practices.” However, International Maritime Organization Secretary-General Dominques has stated unequivocally that no state may impede traffic through straits used for international navigation; charging for such passage lacks legal basis under international law. China’s core position remains clear: the strait must return to unrestricted freedom of passage, without any conditional fees.

The underlying logic behind Iran’s approach is to treat the Strait of Hormuz as a post-conflict revenue generator. U.S. intelligence assessments estimate Iran aims to generate around $40 billion annually through this mechanism. Yet this strategy faces serious constraints. Oman has explicitly opposed the toll system, and a joint letter from five Gulf Cooperation Council states to the IMO rejected cooperation. Furthermore, Lloyd’s of London has issued a directive: any payment to Iran will void war risk insurance coverage. This means even if shipowners are willing to pay, insurers will not permit it.

Original source: toutiao.com/article/1881439600836615/

Disclaimer: The views expressed in this article are those of the author alone.