economy
How Iran turned a tiny island into an oil 'toll booth' as Tehran cements grip on global energy flows
Iran has established a de facto safe shipping corridor in the north of the Strait of Hormuz to select ships, as Tehran sought to monetize its grip over the waterway.
TL;DR
- Iran has created a de facto safe-shipping corridor north of Larak Island in the Strait of Hormuz.
- Vessels passing through this corridor are vetted by the IRGC and port authorities.
- A significant portion of traffic has been diverted through this channel since the war began.
- Iran seeks to monetize its control over the Strait of Hormuz by imposing fees on passage.
- Payments for passage have been observed in Chinese yuan, sometimes facilitated by Chinese companies.
- A parliamentary bill is being considered to formalize toll collection on vessels transiting the strait.
- Select countries, including China and India, have reportedly secured assurances for safe passage for their vessels.
- International law experts suggest Iran's actions may violate the UN's law of the sea treaty.
- Unlike the Suez and Panama canals, the Strait of Hormuz is a natural waterway, and Iran's toll imposition may lack legal basis.