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Strait of Hormuz Fees: New Economic Trouble for Europe? | DW News

European officials warn that Iran’s proposed $8 billion‑a‑month passage fee for the Strait of Hormuz could cripple energy imports and shipping costs. Tehran says the levy would fund rebuilding schools, hospitals and infrastructure damaged in its recent conflict with Israel and the United States, and plans to split revenues with neighboring Oman. The fee would hit the EU hard: about 8.5 % of its liquefied natural gas, and roughly 40 % of jet fuel and diesel, transit the strait. Greece, which controls roughly one‑fifth of the world’s merchant fleet, would see its shipping operators face steep surcharges. Under Article 37 of the UN Convention on the Law of the Sea, the right of innocent passage is guaranteed, making any charge a potential breach of international law. European leaders have called the move “completely unacceptable,” emphasizing that the strait is a public good and that freedom of navigation must be preserved. They warn that allowing a fee could set a dangerous precedent, encouraging other coastal states to monetize strategic waterways. If implemented, the levy could raise freight rates, inflate European energy prices and destabilize global trade patterns, forcing the EU to consider legal challenges or diplomatic pressure to protect the principle of free maritime passage.