Iran’s Strait of Hormuz toll plan: Is India exempt and which countries get access?

The move comes after Iran shut the strategic maritime passage following the outbreak of war on February 28. The closure disrupted global energy markets and raised fears of a wider regional conflict. The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and remains vital for oil exports from Gulf countries.

Why did Iran launch new toll system?

Iran’s action followed the collapse of diplomatic efforts between the US and Iran. President Donald Trump rejected Iran’s demand for an end to the war on all fronts, including in Lebanon, as “totally unacceptable”.

Iran had sought an end to the fighting before opening talks on sensitive issues such as its nuclear programme. Tehran also demanded compensation for war damage, recognition of its authority over the Strait of Hormuz, an end to the US naval blockade, guarantees against future attacks, removal of sanctions and permission for Iranian oil sales.

Trump dismissed those conditions and defended the US pressure campaign against Iran. His administration earlier announced a naval blockade around the Strait after negotiations failed. Trump claimed Iran had promised to reopen the passage but later backed away from the commitment.

What is Iran’s new Strait authority?

According to shipping journal Lloyd’s List, Iran has created a new body called the Persian Gulf Strait Authority (PGSA) to manage ship movement through the Strait of Hormuz. The authority now oversees transit approvals and toll collection for vessels entering the waterway.

Lloyd’s List reported that ships must first obtain transit authorisation before entering the strait. The publication cited a “Vessel Information Declaration” form issued by the agency. The form requires ships to submit ownership details, insurance records, crew information and planned sailing routes.

“The Persian Gulf Strait Authority (PGSA) has already introduced a new framework requiring ships to obtain transit authorisation and pay tolls before sailing,” Lloyd’s List said.

Iranian broadcaster Press TV described the system as a mechanism to “exercise sovereignty over the Strait of Hormuz”. According to reports, vessels have received new regulations through the official email address.

Reports said the declaration form contains more than 40 questions. Ships must provide details including vessel name, identification number, previous names, country of origin, destination ports and the nationalities of owners, operators and crew members.

The system also requires ships to send “complete and accurate information” before entering the waterway. Iranian authorities warned that incomplete or incorrect details could result in consequences for vessels.

Reuters reported that Iran began implementing the oversight mechanism on May 5. Iranian state-linked media described it as a “traffic management” framework rather than a closure system.

The new rules have already affected global shipping companies. Lloyd’s List reported that some operators paid millions of dollars to secure transit approval. One operator reportedly paid nearly $2 million for clearance.

Will India and other countries face toll charges?
It remains unclear whether all countries and commercial operators will have to pay the same fees or face identical restrictions.

“The Persian Gulf Strait Authority (PGSA) has already introduced a new framework requiring ships to obtain transit authorisation and pay tolls before sailing,” according to Lloyd’s List, a publication that covers shipping and maritime trade news and intelligence.

The new framework may be beneficial for countries like India, China, Pakistan and Russia that receive preferential treatment because of their diplomatic ties with Tehran, according to Sunday Guardian Live. Some Gulf nations and Asian trading partners could also receive favourable consideration.

India has maintained communication with Iran during the crisis and previously helped bring back ships stranded near the Strait of Hormuz. So far, India has evacuated around a dozen vessels from West Asia through the route.

At the same time, vessels linked to the United States and Israel could face restrictions or additional scrutiny under the new system.

Iranian military official Mohammad Akraminia warned countries cooperating with American sanctions against Tehran. “Countries that comply with the United States by imposing sanctions on the Islamic Republic of Iran will certainly face difficulties crossing the strait,” he told Iran’s IRNA news agency.

“We have established a new legal and security system in the Strait of Hormuz. From now on, any vessel wishing to pass through it must coordinate with us,” he said. Akraminia added that the system was already active and would deliver “economic, security and political gains” for Iran.

Iranian leaders have also linked the Strait policy to their wider geopolitical strategy. Ebrahim Azizi, who heads the Iranian parliament’s national security commission, warned countries against supporting American-backed measures against Tehran.

“We warn governments, including microstates like Bahrain, that siding with the US-backed resolution will bring severe consequences. The Strait of Hormuz is a vital lifeline; do not risk closing it on yourselves forever,” Azizi wrote on X.

Iran’s Supreme Leader Mojtaba Khamenei also referred to the strategic importance of the strait last week. In a Telegram post, he spoke about a “new regional and global order under the strategy of a strong Iran” and said there would be “no place for foreigners and their mischief”. He also referred to “using the leverage of closing the strait”.

Legal experts say Iran’s toll system could violate the United Nations Convention on the Law of the Sea (UNCLOS), which protects navigation rights through international waterways. Reuters reported that although international courts could rule against Tehran, enforcement remains difficult because such rulings are not binding on Iran.