European Commission rejects Iran and US plans to charge Hormuz transit fees
The European Commission has rejected attempts by Iran or the United States to impose charges on vessels crossing the Strait of Hormuz, citing international law’s guarantee of freedom of navigation.
Approximately 2,000 ships and 20,000 seafarers remain trapped in the Persian Gulf due to escalating tensions, significantly affecting global supply chains and energy prices.
“International law provides for the freedom of navigation, which means no payment or toll whatsoever,” stated a European Commission spokesperson, emphasising the Strait of Hormuz as a public good for all humanity.
Key developments
The European Commission has strongly opposed any fee imposition on vessels crossing the Strait of Hormuz, stating that international law guarantees freedom of navigation without tolls.
Amidst ongoing tensions, traffic data shows few vessels have passed through Hormuz recently, with around 2,000 ships and 20,000 seafarers remaining trapped in the Persian Gulf.
EU rejects Trump’s ‘joint venture’ with Iran to charge ships through Strait of Hormuz
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The European Commission has firmly rejected any attempt, by Iran or the United States, to charge vessels for crossing the Strait of Hormuz, while admitting the final decision on whether to pay a fee is entirely at the discretion of affected companies.
“International law provides for the freedom of navigation, which means what? It means no payment or toll whatsoever,” a Commission spokesperson said on Thursday afternoon in response to an EU News question.
“The Strait of Hormuz, like any other maritime lane, is a public good for all humanity, which means navigation must be free. Freedom of navigation must be restored.”
The pushback comes a day after US President Donald Trump stirred concern across Europe by suggesting a “joint venture” with Tehran to impose a pay-to-pass system on the waterway, which is vital for the transit of oil, gas and fertiliser supplies.
“It’s a way of securing it, also securing it from lots of other people,” Trump told ABC News. “It’s a beautiful thing.”
Karoline Leavitt, the White House press secretary, later said the idea would “continue to be discussed” but stressed the “immediate priority” was reopening the shipping lane “without any limitations, whether in the form of tolls or otherwise”.
Hormuz has been under Iran’s tight control since the start of the US-Israeli strikes on 28 February, crippling supply chains and sending energy prices soaring worldwide.
According to Trump, the ceasefire deal announced earlier this week would lead to the “safe” reopening of Hormuz. But the narrow passage was closed again on Wednesday after Israel launched massive strikes against Lebanon, which Iran considered to be a violation of its version of the 10-point plan. (The White House has fiercely contested the plan and said Lebanon was excluded from the agreed terms.)
On Thursday, confusion continued to reign over Hormuz, with traffic data showing that only a handful of ships had managed to sail through.
An estimated 2,000 ships and 20,000 seafarers remain trapped in the Persian Gulf.
Iran is reportedly operating a new system that charges each vessel $1 per oil barrel carried on board. The payment can be made either in Chinese yuan or cryptocurrency, two options that bypass Western financial oversight.
For Brussels, neither Trump’s “joint venture” nor Iran’s $1-per-barrel system is acceptable because they contravene the United Nations Convention on the Law of the Sea (UNCLOS), which strictly forbids charging for simple transit. Fees are only allowed when a specific service, such as port access or maintenance, is provided.
Even though the US and Iran are among the few countries that have not ratified UNCLOS, its rules have become customary law worldwide.
Asked whether European companies should agree to pay or remain stranded in the Persian Gulf, the Commission said the decision should be made by private operators themselves, taking into account their “various interests”.
“It is up to the concerned companies and ship-owners to see whether, despite this, they would still want to pay this fee,” chief spokesperson Paula Pinho told reporters.
Europeans have been mulling plans to help secure Hormuz, but nothing specific has been put on the table. Tehran considers the shipping lane its greatest leverage and is loath to make any concessions unless Washington reciprocates.