Strait of Hormuz tolls may break global trade law, experts warn

NEW YORK (AP) — Ship traffic is increasing in the Strait of Hormuz after a temporary peace deal between Iran and the United States. But a new fight over who controls the waterway — and whether ships must pay to use it — threatens to disrupt global oil supplies again. Iran and the U.S. signed an interim agreement to end a war that blocked the strait, raised oil prices, and fueled inflation. However, the question of tolls could harm talks for a lasting peace. Over the weekend, Iran said it reclosed the strait after Israel attacked Lebanon. The U.S. disagreed. Tracking data showed dozens of ships passed through, but far fewer than the daily average before the war. President Donald Trump suggested the U.S. might charge its own tolls if no final deal is reached within 60 days. Before the war, passage was free. But Iran recently created a new authority to collect money from ships and still expects vessels to register with it. No single country owns the Strait of Hormuz. It borders both Iran and Oman. A recent agreement lets Iran manage the strait for now, while it talks with Oman and six other Gulf states about future control. Iran agreed not to charge tolls for 60 days. Legal experts say tolls would break decades of international trade rules. The United Nations Convention on the Law of the Sea guarantees ships the right of “transit passage” through natural waterways like the Strait of Hormuz. Fees are only allowed at ports or for specific services requested by a ship. “You can’t impose fees for a ship exercising its right of transit passage,” said James Kraska, a professor of international maritime law at the U.S. Naval War College. “Fees in this context are just not lawful.” The U.S. and Iran have not signed that treaty, but experts say both countries are still bound by its rules through other international agreements. Even if a final deal is reached, analysts say it could take months for oil, gas, and other trade to return to normal. Insurers remain cautious about the situation. “There is a degree of nervousness around the situation,” said Marcus Baker, global head of marine and cargo at insurance firm Marsh. “We’ll see what the next six weeks brings us.”