The Iranian government has officially introduced a toll system for ships passing through the Strait of Hormuz, one of the world’s most important maritime trade routes.

Tehran shut the strategic waterway after the war with the United States and Israel began on February 28 following military strikes by both countries. Nearly one-fifth of the world’s oil supplies and major global seaborne trade move through the Strait of Hormuz.

The new move by Iran has raised concerns across global shipping and energy markets as countries now wait for clarity on how the toll system will operate and which nations may be affected.

Trump Rejects Iran’s Conditions for Talks

US President Donald Trump recently dismissed Iran’s response to an American peace proposal aimed at reopening negotiations.

Iran had reportedly suggested ending military action before discussing larger disputes such as its nuclear programme. Tehran also demanded compensation for war damage, recognition of its authority over the Strait of Hormuz, an end to the US naval blockade, removal of sanctions, and restoration of Iranian oil exports.

Trump rejected these demands and described them as “totally unacceptable”.

Iran Creates New Authority to Manage Strait Passage

According to reports, Iran has formed a new organisation called the Persian Gulf Strait Authority (PGSA) to manage ship movements and collect transit tolls.

Shipping publication Lloyd’s List reported that vessels must now receive approval before entering the strait.

“The Persian Gulf Strait Authority (PGSA) has already introduced a new framework requiring ships to obtain transit authorisation and pay tolls before sailing,” Lloyd’s List stated.

Reports said the authority has circulated a form titled “Vessel Information Declaration” to shipping operators.

The form reportedly states that all ships seeking safe passage through the strait “are required to submit detailed records of ownership, insurance, crew details and intended transit route.”

Iranian broadcaster Press TV reportedly described the move as a new “system to exercise sovereignty over the Strait of Hormuz”.

Ships Must Submit Detailed Information

According to reports, shipping vessels will now need to:

• Obtain approval from the Persian Gulf Strait Authority
• Share cargo and ownership details
• Pay transit-related charges before entering the waterway

Reports suggest the declaration form contains more than 40 questions. These include the ship’s name, identification number, previous names, origin and destination countries, and details of owners, operators, and crew members.

Authorities reportedly instructed vessels to email “complete and accurate information" before transit. After verification, ships will receive “further instructions” through email.

Iran has also warned that incomplete or incorrect information could lead to consequences for vessels.

Iran Says New System Began Earlier This Month

According to Reuters, Iran started implementing the new oversight mechanism on May 5.

However, Iranian state-linked media described the move as a “traffic management” system rather than a restriction on maritime movement.

Will India Have to Pay the Hormuz Toll?

It remains unclear whether all countries and shipping operators will need to pay the toll.

Reports suggest Iran may offer priority passage to countries seen as friendly or diplomatically aligned with Tehran. These reportedly include:

• India
• China
• Pakistan
• Russia

India has previously coordinated with Iran to bring stranded vessels safely home through the Strait of Hormuz. Reports state that India has already evacuated around a dozen ships from West Asia through the route.

Some Gulf countries and Asian trade partners may also receive concessions from Tehran.

However, ships connected to the United States or Israel could reportedly face restrictions or additional scrutiny.

Some Operators Already Paying Millions

According to Lloyd’s List, some commercial shipping operators have already paid large sums to secure transit permission through the strait.

One operator reportedly paid nearly $2 million (around Rs 19 crore) for approval.

Legality of Iran’s Move Under Question

According to Reuters, Iran’s decision may violate the United Nations Convention on the Law of the Sea (UNCLOS).

However, experts believe enforcing any ruling against Tehran could prove difficult. International courts such as the International Tribunal for the Law of the Sea and the International Court of Justice may issue judgments, but those decisions are not binding on Iran.

Iranian Officials Warn Countries Supporting US Sanctions

Iranian military official Mohammad Akraminia warned countries supporting US sanctions against Tehran.

"Countries that comply with the United States by imposing sanctions on the Islamic Republic of Iran will certainly face difficulties crossing the strait," he told Iran’s IRNA news agency.

“We have established a new legal and security system in the Strait of Hormuz. From now on, any vessel wishing to pass through it must coordinate with us,” he added.

Akraminia said the system was already active and would deliver “economic, security and political gains”.

Iran Warns Regional Countries Against Supporting US

Ebrahim Azizi, who heads the Iranian parliament’s national security commission, also issued a warning on social media platform X.

“We warn governments, including microstates like Bahrain, that siding with the US-backed resolution will bring severe consequences. The Strait of Hormuz is a vital lifeline; do not risk closing it on yourselves forever.”

Iran’s Supreme Leader Speaks of New Regional Order

Iran’s Supreme Leader Mojtaba Khamenei also commented on the issue last week through Telegram.

He spoke about building a “new regional and global order under the strategy of a strong Iran” where there would be “no place for foreigners and their mischief”.

He also referred to “using the leverage of closing the strait” to achieve that vision.

US Naval Blockade Added to Tensions

Earlier in April, President Trump announced a US naval blockade around the already restricted Strait of Hormuz after talks between Washington and Tehran collapsed.

Trump claimed the move came after “Iran promised to open the Strait of Hormuz” and “knowingly failed to do so”.