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Iranian state media, including Fars and Tasnim, have reported that the draft law is in the works to impose transit fees on ships crossing the Strait of Hormuz. The proposal is presently being finalised and is expected to be reviewed by the country’s legal authorities before moving through the legislative process.
A senior member of Iran’s parliamentary civil affairs committee confirmed that the proposal has already been prepared. Officials say the idea is that Iran provides security along this narrow maritime passage, making it reasonable for the country to charge vessels for safe transit.
Security costs at the core of proposal
Officials familiar with the plan say the proposed charges are meant to cover the cost of securing ships passing through the strait. They point out that similar fees are common in other international transit routes, where countries charge for safe passage.
The official cited in the reports has not been named, though the comments point to Tehran’s effort to formalise its role in protecting the route while also creating a new source of revenue.
Massive revenue potential
Shipping analysts tracking maritime movements say that Iran has already collected fees from some vessels, with amounts reportedly reaching up to $2 million per ship in certain cases. Estimates indicate that Tehran could be aiming to generate as much as $75 billion through such measures.
The Strait of Hormuz carries nearly 20 percent of the world’s energy supplies, including crude oil and liquefied natural gas. Any change in how ships are allowed to pass through this chokepoint has immediate implications for international markets.
Recent disruptions in the strait have created pressure on several South Asian economies, including India, Pakistan, Bangladesh and Sri Lanka, all of which depend heavily on energy imports routed through this passage.
Selective access for friendly nations
Iran’s Foreign Minister Syed Abbas Araghchi has said that ships from certain countries will continue to pass without restrictions. These include India, China, Pakistan, Iraq and Russia, which Tehran considers friendly nations.
This selective approach suggests that while the proposed toll system may tighten control over the strait, it could also be used as a diplomatic lever, influencing access based on geopolitical relationships.
With the draft law nearing completion, attention is now on how international shipping companies and governments respond. The Strait of Hormuz is a lifeline for energy trade, and any change in its rules is set to ripple far beyond the region.
The reported decision by Iran to impose a transit fee (or "toll") on vessels passing through the Strait of Hormuz marks a historic and controversial shift in maritime law.
Here is what this development means for India and the global economy.
1. The "Toll Booth" Reality: $2 Million Per Trip
Reports from late March 2026 indicate that the IRGC (Islamic Revolutionary Guard Corps) has begun charging select merchant vessels approximately $2 million (₹18.8 crore) per passage.
The Justification: Iranian officials argue that because they are providing a "secure corridor" and maintaining the waterway during a conflict, they are entitled to a service fee.
The Mechanism: This is not yet a systematic law but is being applied on a case-by-case basis.
Ships are required to submit full documentation and travel under IRGC escort through designated lanes. 
2. What it Means for India
India is in a unique and delicate position. As a "friendly nation," India has been granted a special exemption from the total blockade, but the economic impact remains heavy.
Energy Relief: In the last 48 hours, several Indian-flagged LPG carriers (including the Jag Vasant and Pine Gas) were permitted to pass.
This has provided immediate relief for India's domestic cooking gas supplies. The Cost of "Free" Passage: While India is listed as a friendly nation, the "informal" nature of these tolls means Indian shipping companies face massive uncertainty. Even if the $2M fee is waived, war-risk insurance premiums for the region have jumped from 0.25% to over 0.5% of a vessel's value.
Diplomatic Balancing: Prime Minister Modi has been in active talks with both Tehran and Washington to ensure the Strait remains "open and accessible," emphasizing that international law does not permit tolls on international waterways.
3. Impact on the Global Economy
The move effectively transforms one of the world's most vital maritime arteries into a "private road," creating a dangerous precedent for global trade.
95% Drop in Traffic: Before the 2026 conflict, roughly 140 ships passed through the Strait daily. Today, that number has dwindled to just 5 or 6 ships per day.
Surging Prices: Crude oil prices have surged nearly 47% this month alone. If the toll system becomes permanent or systematic, analysts warn that Brent crude could stabilize well above $120 per barrel.
The 48-Hour Ultimatum: The situation is a powder keg. U.S. President Donald Trump recently issued a 48-hour deadline for Iran to "fully open" the Strait without threat, warning that the U.S. would target Iran’s power plants if they continue to restrict or tax international shipping.
Summary Table: Winners and Losers
| Entity | Status | Impact |
| Iran | Gaining | Generating an estimated $139M/day in revenue due to higher oil prices and selective tolls. |
| India | Cautious | Secured passage for LPG/Oil, but facing high insurance costs and diplomatic pressure. |
| China | Protected | Iranian oil continues to flow to China at narrow discounts; seen as Iran's primary "ally." |
| Global Consumer | Losing | Higher fuel costs, rising prices for plastics (polypropylene), and potential food inflation. |
The Legal Conflict: Under the UN Convention on the Law of the Sea (UNCLOS), the Strait of Hormuz is an "international strait" where ships enjoy the right of transit passage—meaning no coastal state can legally impose a tax or toll on ships simply passing through.
Would you like me to track the current status of the U.S. 48-hour deadline or look into how this is specifically affecting petrol and diesel prices in India?
