Iran turns Larak Island into oil checkpoint

Key Points:

• Iran has created a de facto safe-shipping corridor north of Larak Island in the Strait of Hormuz, controlling and vetting vessels transiting this critical oil shipping route amid a 90% drop in traffic since the war began on February 28.
• The Islamic Revolutionary Guard Corps (IRGC) and port authorities screen ships, granting passage selectively, primarily favoring countries with friendlier relations or trade links, effectively establishing a "toll booth" regime along the strait.
• Iran's parliament recently passed a bill to formalize toll collection on vessels passing through the strait, requiring agreement from neighboring countries and imposing fees on shipping, energy transit, and food supplies, with some payments reportedly made in Chinese yuan.
• Several countries, including China, India, Pakistan, Malaysia, and Iraq, have engaged in direct talks with Tehran to coordinate safe transits, with some vessels escorted by their national warships and others exempted from fees.
• Experts say Iran's attempt to impose transit tolls violates international maritime law, as the Strait of Hormuz is an internationally recognized shipping lane, unlike man-made canals such as Suez or Panama, which legally charge fees for their operation and maintenance.