India has expressed firm opposition to the imposition of any tolls or fees for cargo vessels navigating the Strait of Hormuz, according to government sources.

This development follows a two-week ceasefire agreement between the United States and Iran, which aims to guarantee the resumption of maritime traffic through one of the world's most critical energy corridors.

Historically, the waterway facilitates the transit of approximately one-fifth of the global supply of crude oil and liquefied natural gas (LNG).

The conflict, which began on 28th February, demonstrated Iran’s significant strategic advantage through its control over the narrow passage. While the new ceasefire effectively declares the Strait "open for business," it also risks formalising Iranian authority over the area.

Reports suggest a negotiated plan would allow both Iran and Oman to levy transit fees on passing ships, with Iranian officials indicating that such revenue would be directed towards national reconstruction efforts.

This proposed shift would upend decades of international precedent that treats the Strait as a free-to-transit international waterway. The move is expected to face heavy resistance from Gulf Arab states, many of which are also facing the burden of rebuilding infrastructure following repeated Iranian strikes on their oil fields during the hostilities.

Further complicating the situation, Iranian Foreign Minister Abbas Araghchi stated that passage would be conducted under Iranian military management. This has created significant uncertainty regarding which specific nations or vessels will be permitted to use the waterway. India, however, remains resolute in its stance against the toll, with sources confirming that New Delhi has yet to engage in any formal discussions with Tehran regarding the fee proposal.

The legal basis for India’s opposition rests on the United Nations Convention on the Law of the Sea (UNCLOS). The convention explicitly prohibits interference with vessels in such vital waterways and establishes them as free for international shipping.

Legal experts note that imposing a toll would be considered illegal under current international law, and the UN Charter would likely require a formal amendment to authorise such a revenue-gathering mechanism.

The urgency of the situation is reflected in the massive backlog of maritime traffic. Lloyd’s List estimates that approximately 800 vessels are currently stranded within the Gulf, and shipowners are now making preparations to move these vessels as the ceasefire takes effect.

The scale of the disruption has been immense; data from Kpler reveals that between 1st March and 7th April, only 307 crossings occurred, representing a staggering 95 per cent decrease compared to standard peacetime traffic levels.

Agencies