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Shipowners warn Strait of Hormuz tolls would harm global livelihoods

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Shipowners warn Strait of Hormuz tolls would harm global livelihoods
Photo: Anthony Esau · Unsplash
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Eight major shipping associations have urged the United Nations to block any plan to impose tolls on vessels passing through the Strait of Hormuz, warning that such fees would damage the global economy and hurt livelihoods worldwide. The call comes amid reports that Iran and Oman are close to an agreement to jointly manage the critical waterway.

The groups, representing shipowners and operators globally, sent a letter to UN Secretary-General Antonio Guterres and International Maritime Organization (IMO) Secretary-General Arsenio Dominguez on August 3, 2026, making it public on August 5. They argue that compulsory transit charges would break established international practice and undermine the legal framework for navigation through international straits.

The associations warn that a permanent toll system would raise energy prices, fuel inflation, and create economic uncertainty, ultimately harming people around the world. They stress that freedom of navigation must not be compromised in political negotiations. The signatories include the Asian Shipowners Association, BIMCO, Cruise Lines International Association, European Shipowners Association, International Chamber of Shipping, Intercargo, Intertanko, and the World Shipping Council.

IMO head Arsenio Dominguez previously told Al Jazeera in April 2026 that countries have no right to charge tolls on such straits, calling any such move "very detrimental." Deborah Elms of the Hinrich Foundation noted that Asia, the main buyer of Gulf energy, would be hit hardest, with diesel, fertilizer, and plastic costs already rising due to disruptions. She added that while oil could be rerouted via pipelines, natural gas remains a problem, and tolls on other waterways could severely affect container and bulk shipping.

Iran set up a de facto toll system after the US and Israel launched military action against it in late February 2026, formalizing it with the Persian Gulf Strait Authority in May. Dozens of attacks on commercial ships, mostly blamed on Iran, have given Tehran effective control over the strait and leverage in war negotiations. The IMO has confirmed 64 incidents and 17 deaths in the region since the conflict began, with over 6,000 seafarers still stranded as of late July 2026, according to the IMO and UN Human Rights Chief Volker Turk.

On August 5, 2026, a tanker reported hearing two explosions while transiting the strait, the UK Maritime Trade Operations Centre said. Drew Thompson of the S Rajaratnam School of International Studies told Al Jazeera that international bodies and shipowners have little leverage to influence any deal involving Iran, Oman, and the US. He noted that while President Trump could use force to prevent tolls, his stance on international law and freedom of navigation remains uncertain.

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