Iran’s ‘Insurance Fees’ Threaten to Toll the Strait of Hormuz

Iran’s PGSA said ships must obtain its permission and mandatory insurance to cross the Strait of Hormuz. The insurance is free now. The agency reserved the right to charge fees later. That document, posted on the agency’s website, threatens to turn the world’s most important energy chokepoint into a toll road.

The US Central Command pushed back. It said 20 vessels had sailed through overnight using a route along Oman’s coast, many with their signals off. Western naval groups have recommended that corridor as the main transit route while the middle of the strait is cleared of mines. US forces will continue freedom of navigation operations, Central Command said, “without any arbitrary requirement claims or impediments.”

The memorandum of understanding signed with the US during the peace deal said transit would be free for the 60-day term. Iran’s PGSA document, posted after the deal, raises the prospect of a permanent toll. Shippers and producers had already voiced that concern.

“At present, this insurance is provided free of charge to the vessel owner, with all expenses covered by the Islamic Republic of Iran,” the document said. “The PGSA reserves the right to introduce insurance fees in the future, which will be determined by the relevant insurer.”

The permit system itself adds operational friction. Ships must submit a request to the PGSA and receive a response within 48 hours. Each permit authorizes a single transit and is valid for five days from issuance. The agency published a map of a fixed corridor and said any deviation would be treated as a violation. The corridor passes along Iran’s coast, and alternatives – including the Oman-coast route – are prohibited under Iran’s claims.