Crossing the Straits Fees.. Why do Egypt, Russia and Panama  have the right to what Iran does not?

Iran is facing growing accusations of racketeering and threatening global energy security, after reports emerged that Tehran has begun imposing fees of up to $2 million (€1.7 million) for what it calls the "safe passage" of ships through the Strait of Hormuz.

The Iranian government says the fees are war reparations for damages, as well as payments for "navigational services", environmental protection and enhanced security measures, and has announced that it is working on a joint protocol with Oman that would require ships to obtain prior authorizations before transit.

While some small Asian shipping companies have silently acquiesced to these tariffs, major global companies have refused to comply with them, while the Institute for the Study of War (ISW) has called the move a "maritime blackmail operation."

The United States, China and the Gulf states have agreed to reject these tariffs, according  to Reuters, quoting a US State Department official, and here the question arises: Why can countries like Egypt and Panama impose tariffs on the passage of their waterways, when Iran has no right to do the same in the Strait of Hormuz?

International Legal Framework for Sea Straits

Navigation in natural straits is not governed by unilateral decisions, but is regulated by the rules of international maritime law, foremost of which is the United Nations Convention on the Law of the Sea (UNCLOS).

The Convention grants ships and aircraft of all States the right of "transit" through the international straits connecting two parts of the high seas, provided that the passage is done without delay or interruption except in extreme emergencies.

The Convention obliges coastal states to allow the passage of ships without interference, and only gives them the right to impose limited service fees, such as marine pilotage or towing services when necessary.

Why are Egypt and Panama entitled to fees?

The situation is radically different in water canals such as the Suez Canal and the Panama Canal, as these passages are not natural but man-made, built and operated by sovereign states that bear huge maintenance and operating costs.

The Suez Canal, for example, generates nearly $4 billion in annual revenues for Egypt, and the 1888 Treaty of Constantinople authorizes fees to finance maintenance and development.

The same is true of the Panama Canal, which was constructed by the United States on behalf of Panama and is now administered under special treaties that give the Panama Canal Authority the right to charge transit fees to fund ongoing maintenance work, including dredging and landslide response.

Thus, the levy of tolls in these canals is legitimate because they are state-owned engineering installations, not natural straits subject to the right of passage.

Limited Exceptions Around the World

There are exceptional cases that allow tolls to be imposed on certain sea lanes, but they are based on special agreements or unique geographical conditions, Russia, for example, charges fees on the North Sea Route in exchange for icebreaker and maritime guidance services.

Turkey's Bosphorus and Dardanelles straits are governed by the 1936 Montreux Agreement, which prohibits transit fees and only allows limited service charges for the use of navigational aids and lighthouses.

In Canada, the government is considering imposing a toll on the Northwest Corridor, but faces strong U.S. opposition.

These cases are not similar to the situation of the Strait of Hormuz, as they are either corridors subject to special agreements or areas that require complex navigational services.

How will the situation in the Strait of Hormuz develop?

Iran's imposition of the tariffs is a major obstacle to the ongoing peace talks between Iran and the United States, which aim to reopen the strait to traffic.

Washington insists that the strait is "international waters" must remain open without restrictions, and US President Donald Trump said during a Cabinet meeting at the White House: "The strait will be open to everyone; We will guard and take care of it, but no one will be allowed to control it."

Trump sharply criticized what he saw as Oman's involvement in Iran's plans, saying, "Oman has to behave just like others, otherwise we will have to destroy it."