Shipowners warn Strait of Hormuz tolls would harm global livelihoods
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.
Sources
- Al JazeeraSecondary
Related
SoftBank beats profit forecasts with $2.2 billion net income
SpaceX stock plunges 13.6% after first quarterly report
Uber forecasts Q3 bookings of $59.25 billion, below estimates
Eli Lilly raises 2026 revenue outlook to $87B on Mounjaro, Zepbound
Novo Nordisk guidance hike fails to ease obesity business concerns
RBI holds rates at 5.25% as inflation hits 18-month high
GM extends China joint venture with SAIC for 20 years to 2047
SpaceX AI capex soars 6x to $18.4B, shares drop 7.5%
Trending now
- Nintendo beats Q1 estimates despite Switch 2 sales falling 34%
- Meta Ray-Ban smartglasses sell 7m pairs amid privacy fears
- SoftBank beats profit forecasts with $2.2 billion net income
- Google AI chief Jeff Dean departs after 27 years amid talent exodus
- SK Hynix plunges 10% leading Asian tech stock sell-off
- Inouye Telescope captures sharpest Sun image revealing instability
- 567-million-year-old fossils reveal earliest animal movement and sex
- Claude Fable 5 AI finds counterexample to 87-year-old Jacobian
Comments
No comments yet. Be the first.