Iran wants Gulf countries on board to collect $40 billion in Hormuz transit fees

The Strait of Hormuz may have reopened after months of conflict, but the battle over who controls one of the world's most important maritime chokepoints is only beginning.

Iran is now pursuing an ambitious plan that it believes could generate as much as $40 billion a year by charging ships for security, safety and environmental services in the strategic waterway, according to The Wall Street Journal. The proposal, which Tehran is discussing with Gulf nations and other partners, marks a major shift in its approach to the strait following the recent US-Iran agreement that ended hostilities and reopened the route.

Although the Islamabad Memorandum lays the groundwork for consultations on the future administration of the Strait of Hormuz, it does not provide for transit fees. Iran's latest proposal expands that conversation by seeking a permanent, revenue-generating management model under which ships would pay for services related to security, safety and environmental protection.

IRAN SEES A NEW REVENUE STREAM

Iranian officials believe the reopening of the strait has created an opportunity to reshape how the waterway is managed in the future.

According to officials cited by The WSJ, Tehran estimates that charging vessels could bring in around $40 billion annually for countries participating in the arrangement. Iran wants neighbouring Gulf states, especially Oman, to join the initiative and share the revenue, while also presenting the plan to countries including China.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf, who is one of the big voices behind the proposal, signalled that Tehran does not want the Strait of Hormuz to return to its previous system.

"Everyone needs to know that management of the strait will never return to the way it was before," Ghalibaf said during a visit to Oman to discuss the proposal.

IRAN LOOKS TO TURKEY FOR A BLUEPRINT

Iran is studying international examples as it develops its proposal.

Officials have pointed to Turkey's management of the Dardanelles Strait as a possible model. Under the 1936 Montreux Convention, Turkey collects fees covering services such as lighthouses, rescue operations and sanitation from ships passing through the waterway.

Iran believes a similar arrangement could eventually be developed for Hormuz, although the circumstance are fundamentally different.

Legal specialists note that any long-term fee system for the Strait of Hormuz would likely require broad international approval through the Maritime Organisation (IMO), rather than unilateral action by Iran.

WASHINGTON PUSHES BACK

The proposal met immediate resistance from the United States.

US Secretary of State Marco Rubio rejected any claims that ships could be charged for using the Strait of Hormuz.

"The reality is that no country on earth has the right to charge for the use of international waterways, and that will never be an acceptable condition of any deal," Rubio said during a visit to Bahrain.

Rubio also said Gulf countries opposed the idea of introducing tolls. He also warned that such a move could create a dangerous precedent for other international shipping routes.

Under the current US-Iran understanding, the Strait of Hormuz is to remain toll-free during the initial 60-day implementation period while Iran oversees demining operations and navigation safety.

Oman has also reiterated that any temporary shipping corridor established through its waters will remain free of transit charges and coordinated with the Maritime Organisation.

THE SHIPS ARE BACK. CONFIDENCE ISN'T

Commercial traffic through the Strait of Hormuz has largely returned to pre-war levels, but the sense of normalcy has not. Tankers are once again moving through one of the world's busiest oil routes, and insurance costs have eased from the sharp spikes seen during the conflict. However, many shipping companies are cautious, mindful of the uncertainty that still hangs over the waterway after months of disruption.

Iran is also introducing new rules for vessels using the strait. Ships are now expected to register before entering the waterway, and Tehran has set up a domestic insurance programme that it says vessels should use while transiting the route.

For Iran, the recent conflict reinforced just how much influence it can wield over a maritime corridor that carries nearly a fifth of the world's oil. Tehran now hopes to turn that strategic leverage into a lasting source of revenue by playing a bigger role in managing the waterway alongside its Gulf neighbours.

Whether that vision takes shape, however, remains an open question. The proposal faces legal hurdles, diplomatic opposition and resistance from countries that insist the Strait of Hormuz must remain a free international waterway.

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