Iran Hints at 'Free for Now, Fees Later' for Ships Transiting Strait of Hormuz

Concerns are growing in the shipping industry as Iran has indicated it may charge "insurance fees" in the future for vessels transiting the Strait of Hormuz, citing a ceasefire memorandum of understanding (MOU) with the United States.

On June 19, the UK's Financial Times reported that a document under the name of the Persian Gulf Strait Authority (PGSA) circulating among shipping industry executives states, "All vessels must hold a valid insurance policy approved by the PGSA."

The PGSA is a government agency established by the Iranian government last month.

According to the document, the insurance is provided "free of charge" for the time being, but the PGSA stated that it "reserves the right to introduce insurance fees in the future, which will be determined by the relevant insurer."

This means that while transit is free for now, fees under the guise of "insurance fees" could be collected in the future.

The PGSA used the term "insurance fees," but it remains unclear whether this is intended to mean "insurance premiums," which is the more commonly used term.

Within the shipping industry, concerns are rising that Iran may attempt to effectively collect transit tolls under various pretexts, such as "fees," "insurance fees," or "insurance premiums."

Earlier, a notice dated June 18 published by the PGSA on its website and social media stated that vessels wishing to transit the Strait of Hormuz must submit a transit application via the PGSA's official website or email at least 48 hours before arriving at the strait to receive prompt clearance.

The PGSA announced that during the 60-day period under the Islamabad MOU signed between the United States and Iran, fees for security, safety, and environmental services, as well as costs for related Iranian insurance, will be waived.

The PGSA advised that vessels must coordinate their designated routes and scheduled transit times with the PGSA to ensure safe navigation and avoid mine-affected areas.

An Iranian official told the Financial Times, "The text of the memorandum of understanding is clear. For a period of 60 days from the date the MoU entered into force, vessel traffic will be carried out without any charges being collected."

However, he explained that after the period ends, Iran and Oman will consult with regional countries to agree on a transit format, which "will likely include fees related to service provision and safe passage."

Oman, whose territorial waters lie on the western side of the Strait of Hormuz, had previously stated it would not collect tolls. However, a person briefed on the situation said Oman is considering imposing "lawful charges" for environmental impact mitigation and services such as "enhanced navigation management, including piloting and security."

Although an agreement to resume transit through the Strait of Hormuz has been reached and declared, tensions remain high.

The newspaper reported that Iran fired warning shots at vessels in the strait on June 19.

In a radio broadcast sent to vessels, the Iranian side stated, "The withdrawal of Israel from Lebanon, the complete lifting of the maritime blockade, and the withdrawal of American terrorist forces are core conditions of the agreement between Iran and the United States, and until these conditions are met, the Strait of Hormuz will remain closed."

It added, "All vessels are instructed to avoid approaching the Strait of Hormuz for their own safety and security," warning that "any vessel that ignores this order will be targeted."

Earlier during the war, Tehran had revealed a plan to charge $2 million (approximately 3 billion won) per vessel in cryptocurrency in exchange for transit through the strait.

The Strait of Hormuz was a key maritime passage through which about one-fifth of the world's oil and liquefied natural gas (LNG) cargo volume passed before the war in Iran began on February 28.
※ Please note: This article was translated by AI and may contain errors.