Home » Strait of Hormuz Toll Would Establish a Troubling Precedent, IMO Warns

Strait of Hormuz Toll Would Establish a Troubling Precedent, IMO Warns

The International Maritime Organization (IMO), a UN shipping agency, has cautioned that imposing a toll on the Strait of Hormuz – a critical waterway through which 20 per cent of the world’s oil and liquefied natural gas (LNG) is transported – would have far-reaching and potentially hazardous implications.
According to an IMO spokesperson, there currently exists no international agreement that would permit the imposition of tolls on vessels passing through international straits. This stance is rooted in the UN Convention on the Law of the Sea (UNCLOS), which has been adopted by IMO member states and guarantees the right of transit passage for ships navigating these waterways.
Under the terms of UNCLOS, states bordering straits are prohibited from impeding or suspending the transit passage of vessels. The Strait of Hormuz, however, falls outside the category of international waters.
This warning comes in response to reports from Iranian media suggesting that Iran is contemplating the imposition of tolls on vessels transiting the strait, with potential revenue to be shared with Oman. Specifically, some reports indicate that Iran could charge up to $2 million per ship, while others propose a per-barrel charge of $1 for oil shipments.

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