Tankers Urged Not to Pay Iran for Use of Strait

After a Tuesday ceasefire failed to restore normal shipping operations, tanker operators are now being told to avoid paying Iran for passage through the Strait of Hormuz. The agreement was meant to include reopening the strait, but Iran has insisted that ships must seek its approval or risk being “targeted and destroyed,” and has proposed charging fees for safe transit.

“We do not believe the payment of tolls is the right way to go about this,” said Phillip Belcher, from Intertanko, a collective representing tanker firms. “We are amazed that this appears to be one of the starting points of negotiations,” he added to the BBC.

US Vice President JD Vance is set to meet Iranian officials in Islamabad, Pakistan, on Saturday to finalize the ceasefire deal. However, the agreement already faces challenges due to ongoing air strikes in Israel and Lebanon, and a stalemate over the critical shipping route. Belcher emphasized that Intertanko, which represents 190 independent operators and over half of the world’s oil tanker fleet, still advises members to avoid the strait until there is a permanent halt to hostilities.

“The Strait is under de facto Iranian military control,” Belcher stated. “Until there’s a lasting cessation of conflict and a coalition of willing nations ensures ship safety, we don’t think Iran should have authority over the waterway,” he explained.

The Iranian Revolutionary Guard Corps (IRGC), part of the Iranian military, manages much of the country’s economic activity but is classified as a terrorist organization by the US and EU. Belcher argued that funding the IRGC through tolls violates international laws and free passage rights. “Paying money to a terrorist entity should be avoided,” he said.

Global Impact of the Blockage

Since the conflict began, ship traffic through the strait has dropped to a near halt. Only 15 vessels have crossed since Tuesday, compared to an average of nearly 140 daily before the war. This has left almost 800 ships stranded in the Gulf, most carrying cargo. Prolonged blockage risks disrupting global oil, gas, and fertilizer supplies, potentially affecting fuel, electricity, food, and medicine prices worldwide.

Meanwhile, President Trump initially suggested the US and Iran might charge fees together for transit. However, he later contradicted this, tweeting: “There are reports that Iran is charging fees to tankers going through the Hormuz Strait. They better not be and, if they are, they better stop now.”

Industry Response and Safety Concerns

Arsenio Dominguez, secretary general of the International Maritime Organisation, stressed that countries must uphold the established right to free navigation. “International straits are for everyone’s use,” he told the BBC, arguing that tolls should not be imposed.

Erik Hanell, CEO of Swedish tanker firm Stena Bulk, said the disruption’s end remains uncertain. His company, he explained, would not attempt to navigate the strait without 100% assurance of safety. “We need guarantees,” Hanell said, noting that there’s limited information from official sources. “Paying fees to use the Strait would be like tolling the English Channel—something we don’t want to continue,” he added.