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

Iran
Initial proposal
$1-2 million

Reduced to:
$100,000-200,000

Both proposals contravene
international maritime law according to IMO

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

Per
ship
 

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

IRAN

Abu
Musa

Disputed waters
between Iran and
UAE, occupied
by Iran

PERSIAN GULF
UAE
Qeshm
UAE
Bandar Abbas
Hormuz
OMAN
Larak
2
1
3
UAE
OMAN
IRAN

Territorial
waters –
12 nautical
miles

IRGC
naval
bases

Claimed
maritime
borders


Memorandum of
Understanding calls
for toll-free transit,
with Iran ensuring
safe passage


Sources: Reuters, Bloomberg, ISW
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