India Rejects Proposal for Shipping Tolls in Strait of Hormuz Despite Ceasefire Transit Plan

India has signalled clear opposition to any proposal that would introduce transit fees for cargo vessels passing through the Strait of Hormuzaccording to government sources. The position comes after reports that a ceasefire arrangement involving the United States and Iran could allow Tehran and Oman to levy charges on ships moving through the critical maritime corridor, which handles a significant share of the world’s energy shipments.

The Strait of Hormuz remains one of the most strategically important shipping routes globally, carrying roughly one fifth of international crude oil and liquefied natural gas flows during normal conditions. Since the conflict that began on February 28, Iran’s effective control over the passage has strengthened its leverage in regional negotiations. Analysts believe the latest ceasefire arrangement could formalize aspects of that control and potentially open the door for new revenue mechanisms linked to maritime transit.

Reports citing regional officials suggest that both Iran and Oman may be permitted to collect transit fees from vessels crossing the strait under the proposed framework. According to those involved in discussions, Iran could channel any such revenue toward reconstruction efforts following damage sustained during the conflict. However, the proposal would represent a major departure from longstanding international practice that treats the strait as a freely accessible global shipping route.

Indian officials have indicated that New Delhi does not support any move to impose tolls on cargo ships transiting the corridor. Sources told NDTV that no discussions have taken place between India and Iran on the issue so far. The government’s position reflects concerns about the legal and economic implications of introducing charges along one of the world’s most vital energy supply routes.

Under the United Nations Convention on the Law of the Sea, key international waterways such as the Strait of Hormuz are recognized as transit passages where interference, including toll collection, is generally not permitted. Any attempt to formalize such fees would require changes to established international legal frameworks. Meanwhile, shipping activity in the region has already been heavily affected by the conflict. Industry data indicates that approximately 800 vessels remain delayed in Gulf waters, and commodity carrier crossings between early March and early April dropped sharply compared with typical peacetime traffic levels.