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Iran's Hormuz Insurance Demand Raises Toll Specter
Iran's PGSA demands mandatory insurance from ships crossing Hormuz, free for now but with future fees possible. US says 20 vessels used Oman coastal route overnight. Allies push Washington not to accept the toll precedent.
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Iran's Persian Gulf Strait Authority posted new terms for crossing the Strait of Hormuz: ships must obtain permission and buy mandatory insurance. The same day, US Central Command reported 20 vessels had transited overnight via a route along Oman's coast.
The insurance is currently free. The PGSA document says it reserves the right to introduce fees in the future. Shippers and producers worry that Iran seeks to turn the world's most important energy chokepoint into a tolled waterway. The interim peace deal with the US guarantees free transit only for its 60-day term.
US allies led by the UK are pressing the Trump administration not to normalize Iran's attempt to introduce fees, a senior official told Bloomberg. The industry warns tolls would violate international maritime law. The precedent could spread to other straits.
The PGSA was created by Iran during the war and has since been placed under US sanctions. Iran's neighbors reject its legitimacy. They have told shipowners not to interact with the body.