Iran Implements Toll System in Strait of Hormuz Amid Ongoing Conflict

Iran has implemented a new toll system in the Strait of Hormuz, charging $2 million for select vessels to pass. This significant move, framed as a demonstration of Iran's strength, has raised concerns about its impact on global oil supply and prices. With approximately 20-25% of the world's crude oil passing through this vital waterway, the implications of such fees could lead to increased costs and potential shortages in countries reliant on these shipments. As tensions escalate, the international community watches closely to see how this economic strategy will unfold amidst ongoing conflict.

By Narendra Chaudhary Mar 23, 2026, 10:58 IST

Strait of Hormuz Becomes a Toll Route

Tehran/Dubai: Amid the ongoing conflict between the United States and Iran, the Strait of Hormuz has transformed into a 'pay-to-pass' route. Iran has begun charging a hefty transit fee of $2 million (approximately ₹18.8 crores) from select vessels navigating this crucial waterway. Aladdin Boroujerdi, a member of the Iranian parliament and the National Security Committee, stated on state television, "Collecting a $2 million transit fee from certain ships demonstrates Iran's strength." He referred to this as a 'new sovereign regime' established in Hormuz after 47 years.

Iran's New Toll System

Since the onset of the conflict, Iran has tightened its control over maritime traffic in the Strait of Hormuz. Reports indicate that the Islamic Revolutionary Guard Corps (IRGC) has created a 'secure shipping corridor' that passes near Iran's Larak Island. Ships must register in advance to pass through, providing details about ownership, cargo, and other pertinent information.

According to reports from Financial Times and Lloyd’s List, at least one private oil tanker operator has paid the $2 million fee for safe passage.

Iranian MP Somayeh Rafiei had previously discussed a bill in parliament proposing the collection of transit fees and 'security taxes' from vessels, which is being framed as compensation for providing regional security.

Boroujerdi's statement confirms that this system is now in effect, with some ships already having paid this 'toll.'

Rising Oil Prices Amid Global Crisis

The Strait of Hormuz is a vital route for approximately 20-25% of the world's crude oil and a significant portion of LNG. Iran's new toll system has led to:

Ships facing hefty fees or opting for longer, more expensive routes.

Several vessels being stranded, impacting oil supply.

Brent crude oil prices already exceeding $100 per barrel due to the conflict, with further increases anticipated from this development.

Reports of shortages of LPG and petrol-diesel in countries like India, as many ships are rerouting or delayed.

Iran's Justification: 'This is Our Jurisdiction'

Iranian officials are framing this move as part of their sovereignty and security. Boroujerdi remarked, "These measures demonstrate Iran's strength." They argue that the increased regional threats due to the conflict necessitate that vessels pay a 'security fee.' However, under international law, Hormuz is classified as an international waterway where all vessels have the right to pass without tolls (as per UNCLOS).

Reactions from the US and Israel

US President Donald Trump previously issued a 48-hour ultimatum to Iran to fully open the Strait, threatening military action against their power plants otherwise. The introduction of this toll system has caused alarm in Washington and Tel Aviv. Experts suggest that this could serve as Iran's economic weapon, potentially prolonging the conflict.

What Lies Ahead?

If Iran formally implements this system, it could have significant repercussions for the global economy.

Countries like India and China are negotiating with Iran for exemptions for their vessels.

However, if the toll continues, oil prices may rise further, inflation could increase, and a deeper global crisis may ensue.

This development shifts the conflict from a purely military front to an economic one. The Strait of Hormuz has now become a 'toll road,' and the world is watching closely to see what the next steps will be.