Amid reports that Iran is imposing $2 million on some ships to transit the Strait of Hormuz, India has taken a firm stand calling for free and safe navigation through the waterway, which remains a sticking point in the US-Iran talks scheduled to be held in Pakistan.
“The collection of $2 million in transit fees from some ships crossing the strait reflects Iran’s strength,” Alaeddin Boroujerdi, a member of the Iranian Parliament’s National Security Committee, told the Islamic Republic of Iran Broadcasting Corporation (IRIB).
The narrow waterway between Iran and Oman, which connects the Persian Gulf to the Arabian Sea, has become a critical maritime checkpoint for ships carrying oil, gas and other goods since Tehran was attacked by the United States and Israel on February 28. It typically carries one-fifth of the world’s total global oil supply from the oil-rich region around the Persian Gulf.
What did India say?
After a temporary ceasefire was reached earlier this week, the Indian Foreign Ministry said that there was “no discussion at all” on the issue of casualties between India and Iran.
“Yes, we have also seen some reports [about toll being levied]…We continue to advocate for free and safe navigation through the Strait of Hormuz. “We made this point in our statement yesterday as well and we continue to do so now as well,” Foreign Ministry spokesman Randhir Jaiswal said Thursday at an inter-ministerial press conference on the West Asia crisis.
Reports of Iran imposing tariffs emerged before the truce as well, while India was given right of passage as a “friendly” country by Iran. But has India paid a price too? New Delhi categorically denies that any such payment was made.
“On the issue of the number of casualties… there has been no discussion on that point between us and Iran,” Jaiswal said again on April 9. “So that is where we are. As for what the scenario would be if a certain situation or event were to arise in the future, we will see when the time comes. But our view at this point is that we continue to advocate free and safe navigation through the Strait of Hormuz.”
At least eight Indian-flagged LPG tankers have passed through the route, while the government has regulated usage, and prices on the gray market have risen to as much as four times the normal rate.
India relies heavily on West Asia for its oil and gas supplies, up to 90% of which is imported, mostly through the Strait of Hormuz.
It is still effectively closed
The strait remains effectively closed, with ship owners awaiting clarification on its status. Traffic remains a fraction of pre-war levels, despite state media reports that the Iranian Ports and Maritime Authority has deployed two safe shipping routes.
Straits are natural waterways, and therefore there are generally no tolls to cross them, according to the United Nations Convention on the Law of the Sea (UNCLOS). There are tolls on man-made waterways such as the Suez Canal and Panama Canal.
But will UNCLOS apply to the Strait of Hormuz? This question arises because Iran and the United States have not ratified the UN convention. However, both countries have mostly adhered to it.
Iran’s 10-point proposal on stopping the latest war in West Asia is said to include formalizing its de facto control of the strait. Unnamed Iranian officials told state media that, as part of the plan, Tehran would impose duties of up to $2 million each on commercial ships passing through the strait.
But US President Donald Trump’s comments added to the theories and confusion. “We’re thinking about doing it as a joint project. It’s a way to secure it — and secure it from a lot of other people,” Trump told ABC News when asked if he would “allow” Tehran to impose such tariffs.
“It’s a beautiful thing,” added the US President, who repeatedly spoke in business terms about the war.
Does the truce include the Strait of Hormuz?
The truce was reached on Wednesday just hours before Trump’s deadline for Iran to fully reopen the strait or face severe destruction. Trump said the truce is conditional on Iran agreeing to the “full, immediate and secure opening” of the Strait of Hormuz.
Iranian Foreign Minister Abbas Araqchi said on Wednesday that safe passage through the strait would be possible for two weeks but “through coordination with the Iranian armed forces and taking into account technical restrictions.”
This sparked reports that Iran and Oman would impose shipping fees. The European Union said Thursday that freedom of navigation in the Strait of Hormuz must be guaranteed “without paying any fees or charges whatsoever.”
There is little evidence of a return to full normalcy either because Israel continues to bomb Lebanon, and is waging a parallel war against the Hezbollah militia allied with Iran. Iran has said the United States bears responsibility for stopping the fighting there, while US officials insist the country was not part of the ceasefire agreement.
Trump said Israeli Prime Minister Benjamin Netanyahu would “stay silent” on air strikes on Lebanon, after the two leaders spoke by phone on Wednesday. Netanyahu later decided to open direct talks with Lebanon.
Pakistani Prime Minister Shehbaz Sharif, the main mediator, initially said the truce included Lebanon, before American and Israeli officials said otherwise.
Iran’s new supreme leader, Mojtaba Khamenei, whose father was killed in the early days of the war, said in a statement on the Telegram app that Iran “will certainly advance the management of the Strait of Hormuz to a new stage.”
