Iran May Charge "Insurance Fee" for Vessels Passing Through the Strait of Hormuz

On June 20, a report from the Financial Times notes that Iran’s Ports and Maritime Organization has issued a directive requiring all vessels to obtain an organization-approved insurance policy to transit the Strait of Hormuz. The coverage is currently free of charge under the timeframe of the U.S.-Iran memorandum of understanding, though the organization may start charging premiums in the future. The official document is now circulating among shipping industry management bodies. Per the directive’s wording: “All vessels must hold a valid insurance policy approved by the Persian Gulf Ports and Maritime Organization.” While the insurance is currently provided at no cost, the organization explicitly states it “reserves the right to impose premiums moving forward.”