Iran's Strait Transit Fees Contradict International Maritime Law—and the US-Iran Deal Defers Resolution

The US-Iran memorandum signed June 17 commits both parties to keeping the Strait of Hormuz open, yet Iran insists it may charge transit fees. Under UNCLOS Article 44—binding customary law—coastal states cannot levy charges on foreign vessels in international straits. Iran's June 9 position asserts the entire strait lies within its territorial waters and invokes the rebus sic stantibus doctrine to justify fee collection. The MOU defers this dispute to the 60-day final-deal window. One-fifth of global oil supply transits the strait. Operators and markets are watching whether negotiations resolve the clash or defer a structural conflict.