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<\/a><\/p>\nIran\u2019s National Security Committee has approved a bill that would impose fees on Strait of Hormuz, the semi-official Fars news agency reported, citing a member of the committee.<\/p>\n
The contours of a more formal system are now emerging, based on the accounts of multiple multiple people with knowledge of the situation, speaking on condition of anonymity as they aren\u2019t authorized to talk to the media.<\/p>\n
Ship operators have to contact an intermediary company linked to the IRGC, and provide information about their vessel\u2019s ownership, flag, the cargo manifest, destination, crew list, and data from its automated identification system, or AIS \u2014 a transponder that ships use to record and broadcast their position.<\/p>\n
The intermediary passes the file onto the IRGC Navy\u2019s Hormozgan Provincial Command for background checks on the ship to make sure that it has no links to Israel or the US, or other states that Iran considers to be enemies.<\/p>\n
If a vessel makes the cut then discussions over the toll begin. The people said that the Iranians have a ranking system of one to five for nations, with ships from countries that are seen as friendly more likely to get better terms. For oil tankers, the starting price in the negotiations is typically around $1 per barrel of oil, paid in yuan, or stablecoins \u2014 cryptocurrencies pegged to the value of hard currency.<\/p>\n
A very large crude carrier, or VLCC, typically has a capacity of around 2 million barrels.<\/p>\n
Once the toll is paid, the IRGC issues a permit code and route instructions. Ships are expected to raise the flag of the nation that negotiated the passage agreements, and in some instances, to change their official registration to that country. As it approaches the Strait of Hormuz, the ship broadcasts its passcode over its very high frequency radio, and is met by a patrol boat that escorts it through the passage, close to the coast between a group of islands that has already been dubbed \u201cthe Iranian tollbooth\u201d by people in the industry.<\/p>\n
Vessel tracking data shows that ship transits through the Strait of Hormuz has increased slightly over the past week, albeit to a fraction of pre-war levels.<\/p>\n
The legal basis for Iran\u2019s imposition of a toll isn\u2019t clear. Countries typically have territorial boundaries extending 12 nautical miles \u2014 around 14 miles, or 22 kilometers \u2014 from their coastlines, in which they are allowed to inspect vessels.<\/p>\n Iran wrote in a letter this month to the International Maritime Organization \u2014 the world\u2019s shipping watchdog \u2014 that ships associated with non-hostile sates are able to receive safe passage through Hormuz. It added that it was restricting those it considered hostile.<\/p>\n \u201cAs the coastal state bordering the Strait, the Islamic Republic of Iran, in full conformity with established principles and rules of international law, has restricted the passage of vessels belonging to or associated with the aggressors,\u201d it said in the letter.<\/p>\n \u201cThe Iranian justification is that this is an exercise of their rights to self-defense, and therefore they need to check the vessels. And in checking these vessels you need to pay a fee,\u201d Jason Chuah, professor of commercial and maritime law at City University London, said. \u201cNow from the perspective of most international law commentators, this is not legal.\u201d<\/p>\n Ship owners and operators face difficult legal questions over whether they should pay tolls, which rules, sanctions and conventions may be applied to them by the US and Iran, and what might be covered by their insurance.<\/p>\n \u201cI think that the Iranian war has thrown up a lot of challenges and questions for international law, perhaps partly because both sides seem to have been engaged in activities which are, to put it mildly, highly controversial under international law or under established rules,\u201d Chuah said.<\/p>\n Insurance costs have spiked dramatically for ships that want to cross the Straits of Hormuz. Several vessels have been hit by projectiles while at anchorage in the Persian Gulf or in the strait. On March 31, a Kuwaiti oil tanker was struck by at least one drone<\/a> near Dubai, causing a fire and damage to the hull. US promises of naval escorts \u2014 as yet unfulfilled \u2014 and state-backed insurance have not reassured ship owners enough that they\u2019re willing to risk their crews.<\/p>\n Negotiating access with the IRGC may not be seen as a safe option either. Notwithstanding the physical risks and the cost of insurance, making deals with the IRGC, which is subject to sanctions by the US, European Union and the UK, puts ships at risk of violating sanctions or anti-money laundering rules, experts said.<\/p>\n US President Donald Trump said on Tuesday night that he wants to end the US\u2019 war with Iran within two or three weeks, whether or not the Strait of Hormuz is reopened. After his comments, Israel and the US continued to strike Iran, which fired missiles and drones at targets across the region, with one projectile hitting an oil tanker in Qatari waters. On Wednesday morning, Trump said that a ceasefire would only be possible if the strait was opened.<\/p>\n<\/a><\/p>\n