Iran, Houthis eye tolls on Hormuz and Red Sea: How world's key straits are governed

Threats to Charge for Passage

Recent statements from Tehran and the Houthi movement have put the spotlight on the legal regimes governing the world's busiest maritime chokepoints. Iranian officials have floated the idea of charging tolls for passage through the Strait of Hormuz, while the Houthis have made similar noises about the Bab el-Mandeb and the Red Sea. These suggestions, though not yet implemented, have sent ripples through the shipping industry and diplomatic circles.

The moves come against a backdrop of heightened tensions in the Gulf and the Red Sea. Analysts note that such fees would be unprecedented in modern times, as international law has long guaranteed freedom of navigation through these critical waterways. The question now is whether these threats are mere posturing or a sign of a more aggressive approach to maritime sovereignty.

What the Law Says

The primary legal framework is the United Nations Convention on the Law of the Sea (UNCLOS), which came into force in 1994. Under UNCLOS, ships enjoy the right of transit passage through straits used for international navigation. This means they can pass without hindrance, provided they do so in a continuous and expeditious manner. Coastal states are not allowed to suspend this right, nor can they impose tolls or charges on foreign vessels.

There are exceptions, however. If a strait has a viable alternative route, the rules are different. For instance, the Strait of Malacca, between Malaysia and Indonesia, is a key chokepoint, but it is not the only route. Similarly, the Suez Canal is not a natural strait but an artificial waterway, so Egypt can and does charge tolls. This distinction is crucial when considering the legality of Iran's or the Houthis' proposals.

Hormuz and the Gulf

The Strait of Hormuz is a narrow passage between Iran and Oman, through which about a fifth of global oil consumption passes. Iran has repeatedly threatened to close it during past crises, but has never actually done so. Charging a fee would be a different matter, as it would test the limits of UNCLOS. Legal experts say that any unilateral imposition would be a clear violation of international law and would likely invite a strong response from the international community.

Oman, which shares control of the strait, has so far remained quiet on the matter. But any disruption to shipping would hit the region's economies hard, including Iran's own oil exports. This has led many to view the threats as a negotiating tactic rather than a concrete policy.

Red Sea and the Houthis

Further south, the Houthis have been targeting shipping in the Red Sea and the Bab el-Mandeb strait. Their attacks have already forced many vessels to reroute around the Cape of Good Hope, adding weeks to voyages and increasing costs. The group has framed its actions as a response to the war in Gaza, but the international community has condemned them as piracy and a threat to global trade.

The Red Sea is a vital artery for cargo between Asia and Europe, and the Suez Canal at its northern end is a major revenue earner for Egypt. Any attempt to charge tolls would not only be illegal but would also directly challenge Egypt's economic interests. The United States and other navies have been conducting patrols to protect shipping, but the situation remains volatile.

A New World Order?

The increased focus on maritime chokepoints has led some commentators to speak of a 'new world order' being shaped by sea power. From the Black Sea to the South China Sea, disputes over navigation rights are becoming more common. The comments from Iran and the Houthis are part of this broader trend, where states and non-state actors alike are testing the boundaries of the existing legal order.

For now, the international community appears united in defending the principle of free navigation. But the gaps in enforcement are evident, and the rules are only as strong as the willingness to uphold them. As tensions persist, the need for a clear and agreed framework has never been more urgent.

What happens next will depend on how these threats evolve. If Iran or the Houthis follow through with actual fees, it could trigger a major diplomatic crisis. Alternatively, the rhetoric may die down as other issues take precedence. Either way, the world is watching these straits more closely than ever, and the coming weeks could set the tone for maritime governance in the years ahead.