U.S. and Iran vie for control of Strait of Hormuz
The U.S. is reinstating its naval blockade of Iranian ports and intends to impose a 20% “safety and security” toll for all other cargo passing through the Strait of Hormuz – a practical, legal and diplomatic minefield
PROPOSED SERVICE/SECURITY CHARGES
Per ship
Iran
Initial proposal
$1-2 million
Reduced to:
$100,000-200,000
U.S.
Blockade of all ships using ports in Iran, others transiting to pay toll
20% toll 
Fully-laden oil tanker could pay $16-32 million
Both proposals contravene international maritime law according to IMO
TRAFFIC SEPARATION SCHEME (TSS)
1
1968 TSS
2
Iranian-asserted TSS
Iranian-controlled route through Strait
3
Southern Traffic Separation Scheme
U.S.-backed, not recognised by Iran
Territorial waters – 12 nautical miles
Disputed waters between Iran and UAE, occupied by Iran
Abu Musa
Hormuz
Qeshm
Bandar Abbas
Larak
PERSIAN GULF
IRGC naval bases
IRAN
UAE
UAE
OMAN
OMAN
IRAN
UAE
Claimed maritime borders
Memorandum of Understanding calls for toll-free transit, with Iran ensuring safe passage
Sources: Reuters, Bloomberg, ISW
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