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Iran is implementing a new system to collect fees from ships passing through the Strait of Hormuz. The U.S. description of a meeting between Presidents Trump and Xi Jinping says Xi opposed Iran charging that money. China's description did not. NPR's Jackie Northam reports on what's being called Iran's tollbooth.
JACKIE NORTHAM, BYLINE: Before the war in Iran, ships could freely pass through the Strait of Hormuz. Now any vessel movement will be formally regulated by Iran. Under the newly created Persian Gulf Strait Authority, ships wanting to cross the vital choke point need to get permission. That begins with an email to the Islamic Revolutionary Guard Corps.
BRETT ERICKSON: They respond with something as straightforward as an Excel spreadsheet asking for all kinds of information.
NORTHAM: Brett Erickson heads up Obsidian Risk Advisors. He says there are more than 40 questions that need to be answered before a ship can proceed.
ERICKSON: They ask for things like origin country and origin point, destination, the type of vessel, the vessel value, vessel cargo, the nationality of the crew, number of crew. And when this is received, they essentially give a green light or red light to whether or not you can navigate.
NORTHAM: Erickson says the Revolutionary Guard would then guide a ship through the Strait of Hormuz via radio communication. At that point, a payment will have to be made. Erickson says this is where it gets murky. It's unclear of the amount of payment or if, in fact, any ships have paid since the toll was established. Ian Ralby heads up Auxilium Worldwide, a nonprofit working on ocean governance issues. He says it's unlikely many ships will pay a fee.
IAN RALBY: Payment to the proposed authority would potentially be considered funding of terrorism under international financing of terrorism laws.
NORTHAM: Ralby says the U.S., the U.K., the European Union and others have sanctioned the Revolutionary Guard Corps. Paying a toll to the IRGC would violate those sanctions.
RALBY: So this is a real problem for shipowners. It may be successful in getting the ship out, but it may also cause that vessel that gets out, along with all its companion vessels around the world, to be sanctioned for terrorist financing.
NORTHAM: Ralby says the Strait of Hormuz is an international waterway, and Iran's decision to implement tolls violates freedom of navigation and it also sets a bad precedent.
RALBY: The worrying thing is, if it is in any way formalized, we will likely see other states in other parts of the world around key choke points start to think similarly.
NORTHAM: Which could further snarl up the maritime movement of goods and energy.
Jackie Northam, NPR News.
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