Iran’s war with the US and Israel has created major crises for the global economy ever since the latter two countries launched a joint military action against Tehran on February 28. The critical waterway, the Strait of Hormuz, has since been weaponised as a bargaining chip between countries with no clear end to the conflict in sight.

As both the US and Iran continue to issue contradictory statements on the current state of peace negotiations, Tehran is now preparing a “professional mechanism” to manage Hormuz traffic, which has dwindled to a trickle. About 3,000 vessels typically transited the waterway each month before the war began in late February, according to maritime data company Lloyd’s List Intelligence. That figure has fallen severely to just 191 vessels crossing the strait in the entire month of April, according to Kpler data.

The strait, through which about 20% of the world’s oil and gas flows, has caused severe oil price surges since the war began. Brent crude oil prices have remained above $100 per barrel in light of the ongoing crisis. On top of these price hikes, Iran’s repeated efforts to counter the US have hinted at the possibility of introducing a new toll system for ships transiting the waterway, triggering even more fears for the global economy.

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Is Iran introducing a toll system for the Strait of Hormuz?

Ebrahim Azizi, the head of the Iranian Parliament’s National Security Committee, said on Saturday that Iran will unveil a “professional mechanism” to regulate maritime traffic in the Strait of Hormuz. Through this proposed system, Iran seeks to keep the route closed for “enemy” ships and those linked to the US-led “Freedom Project.”

Taking to X over the weekend, the Iranian official wrote online, “Iran, within the framework of its national sovereignty and the guarantee of international trade security, has prepared a professional mechanism to manage traffic in the Strait of Hormuz along a designated route, which will be unveiled soon.”

He added, “In this process, only commercial vessels and parties cooperating with Iran will benefit from it. The necessary fees will be collected for the specialized services provided under this mechanism. This route will remain closed to the operators of the so-called ‘freedom project.'”

According to the IRGC-affiliated Fars News agency, Iran has also launched a new maritime insurance platform called “Hormuz Safe.” Meant for vessels crossing the waterway, it reportedly offers digital insurance policies and allows for payments in cryptocurrency, including Bitcoin.

India speaks out against Hormuz crisis’ impact on commercial shipping

Shortly after the top Iranian official’s “professional mechanism” announcement tied to the Hormuz Strait, India’s Permanent Representative to the United Nations, New York, opened up about the country’s approach to the recent energy and fertiliser crisis triggered by the West Asia conflict.

Highlighting his remarks at the Special Meeting of the UN Economic and Social Council (ECOSOC) on Safeguarding energy and supply flows, Parvathaneni Harish wrote on X, “A combination of short-term and structural measures alongside international cooperation are essential to respond to the crisis.”

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He also reiterated that “targeting of commercial shipping, endangering civilian crew and impeding freedom of navigation” in the Strait of Hormuz was “unacceptable.”

Back in April, several Indian ships were stranded in the Gulf amid the Hormuz Strait closure. “We have ten Indian ships which have exited Strait of Hormuz safely in the last few weeks. We have 14 Indian ships which are still in the Persian Gulf,” said External Affairs Ministry spokesman Randhir Jaiswal.

While India recently resumed oil purchases from Iran for the first time in seven years, the ongoing conflict again exposed an Indian-flagged vessel to hostilities near the coast of Oman a few days ago. Maritime security company Vanguard identified the ship as the MSV Haj Ali.

Calling the incident “unacceptable,” the Ministry of External Affairs thanked Omani authorities for rescuing the crew.

On the sidelines of a recent BRICS summit in New Delhi, Iranian Foreign Minister Seyed Abbad Araghchi assured that the strait remains open to vessels of all countries, including India, except for those belonging to “enemy” nations.

“On the Strait of Hormuz, this is also our wish that it will be fully reopened. As far as we are concerned, the Strait of Hormuz is open, and all vessels can pass, except the vessels of those countries that are fighting with us,” Araghchi said at a press conference in India earlier this week.

“Those vessels that want to pass should obviously coordinate with our military because of the mines and obstacles which exist. So we will guide them to pass, as we have done for a number of Indian vessels, and help them to pass. The safe passage of all vessels is our policy and our interest, and we are ready to help those who want to pass safely and securely. This is our policy,” he added.

US’ efforts to reopen the Strait of Hormuz

Earlier this month, the US military commenced its “Project Freedom” operation, which aims to reopen the Hormuz Strait to commercial traffic. US President Donald Trump announced the operation in a Truth Social post in the first week of May, saying that the US has assured countries whose ships are stuck due to the ongoing war that it will “guide their Ships safely out of these restricted Waterways.”

As part of its efforts to aid the operation, the US Central Command said that the US military will deploy “guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms, and 15,000 service members.”

However, Trump paused the US-led campaign merely days after it was announced, positioning the need to finalise a peace deal with Iran as the impetus behind the decision. Despite the move based “on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran,” he maintained his blockade of Iranian ports would still be effective.

On Saturday (US time), the US Central Command issued a new update on the scene unfolding inside the important waterway. Sharing a glimpse of a US Army helicopter observing commercial ships while flying over regional waters near the Strait of Hormuz amid the ongoing blockade against Iran, CENTCOM wrote, “As of May 16, 78 commercial ships have been redirected, and 4 have been disabled to ensure compliance.”

The US Treasury Department’s Office of Foreign Assets Control (OFAC) even sounded the alarm against Iranian demands for “toll” payments in exchange for safe passage through the Strait of Hormuz. On May 1, the agency issued an “OFAC Alert,” warning US and non-US persons about the sanctions risks of making any such payments to the Iranian regime for safe passages.

The ‘OFAC Alert’ stated, “Maritime industry participants involved with vessels calling at Iranian ports face significant sanctions risk under multiple sanctions authorities targeting Iran’s shipping sector and ports, and OFAC will continue to aggressively target Iran’s main revenue-generating sectors, in particular its petroleum and petrochemical sectors, under Executive Order 13902 and other sanctions authorities.”

“Vessels of all nations entering or leaving Iranian ports and coastline are also subject to U.S. Central Command’s impartial naval blockade, and OFAC authorisations do not supersede the authorities of all other U.S. government agencies and departments, including US Central Command.”