In Delhi for BRICS meet, Iran’s Dy FM says Tehran will continue levying Hormuz ‘service fees’

Iran's Deputy Foreign Minister, present in New Delhi for the BRICS Foreign Ministers' Meeting (May 14–15, 2026), stated that Tehran intends to continue levyi...

What Happened

Iran's Deputy Foreign Minister, present in New Delhi for the BRICS Foreign Ministers' Meeting (May 14–15, 2026), stated that Tehran intends to continue levying a toll on ships transiting the Strait of Hormuz.
Iran began controlling traffic through the Strait and charging transit fees in early 2026, in the context of the ongoing military conflict involving Iran; demands have reportedly reached as high as USD 2 million per vessel.
The statement was made on the sidelines of the BRICS ministerial meeting, which India is hosting under its 2026 BRICS chairship with the theme "Building for Resilience, Innovation, Cooperation and Sustainability."
The toll regime is disputed internationally: the UN Convention on the Law of the Sea (UNCLOS) provides a right of transit passage through international straits that cannot be suspended, while Iran — which signed but never ratified UNCLOS — disputes its applicability.
India, which transits significant volumes of crude oil and LNG through the Strait of Hormuz, has a direct energy security stake in the legal and practical resolution of this dispute.

Static Topic Bridges

Strait of Hormuz: Strategic Geography and Global Trade Significance

The Strait of Hormuz is a narrow waterway connecting the Persian Gulf to the Gulf of Oman, and is the world's single most critical maritime chokepoint for energy trade. At its narrowest point, the Strait measures approximately 21 nautical miles (nm) in width. The territorial waters of Iran (to the north) and Oman (to the south) overlap at the Strait, meaning large vessels must transit through the territorial sea of at least one of these states.

Approximately 20–21 million barrels of oil per day transited the Strait of Hormuz in recent years, representing roughly 20–25% of global seaborne oil trade.
Approximately 20% of the world's liquefied natural gas (LNG) also passes through this chokepoint.
The Strait is the only maritime exit point for oil exports from Saudi Arabia, UAE, Kuwait, Iraq, Qatar, and Iran itself.
India's dependence: A significant share of India's crude oil imports originate in the Gulf region; any sustained disruption affects India's energy security and inflation directly.
There is no major alternative to the Strait for most Gulf energy exporters; the only partial alternative is the Saudi East-West Pipeline (capacity approximately 5 million barrels/day) reaching the Red Sea.

Connection to this news: Iran's toll regime directly threatens the free flow of energy through this critical chokepoint, raising energy costs and legal uncertainty for all importing nations, including India.

UNCLOS and the Transit Passage Regime

The United Nations Convention on the Law of the Sea (UNCLOS) was opened for signature in 1982 and entered into force in 1994. It is the comprehensive international treaty governing ocean use, territorial waters, exclusive economic zones (EEZs), and rights of passage through international straits. Part III of UNCLOS (Articles 37–44) establishes the "transit passage" regime for straits used for international navigation: all ships and aircraft have a right of transit passage that "shall not be impeded" and cannot be suspended.

UNCLOS signed: 1982; entered into force: 1994. India is a signatory and has ratified UNCLOS.
Iran: signed UNCLOS in 1982 but has never ratified it. Iran disputes that the transit passage regime constitutes customary international law binding on non-parties.
The transit passage regime (UNCLOS) is widely regarded by international legal experts and most states as customary international law, binding on all states regardless of UNCLOS ratification status.
Iran's domestic law requires prior notification or authorisation for foreign warships to enter Iranian territorial waters, a position at odds with UNCLOS's transit passage provisions.
Imposing a toll on transit passage is widely considered a violation of UNCLOS Article 44 (no charges may be levied solely for passage through a strait).

Connection to this news: Iran's toll assertion is legally contested under UNCLOS, which prohibits charges for transit passage. Iran's non-ratification of UNCLOS provides it a legal argument, though most states and international legal bodies reject this position.

BRICS Membership and India's 2026 Chairship

BRICS (Brazil, Russia, India, China, South Africa) was established as a forum in 2009 (the first summit was held in Yekaterinburg, Russia in 2009; South Africa joined in 2010 making it "BRICS"). In 2024, Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia joined as full members. Indonesia joined in January 2025. The current 11-member BRICS collectively represents more than a quarter of global GDP and approximately half the world's population.

BRICS founding year: 2009 (as BRIC); South Africa added in 2010 (BRICS).
2024 expansion: Egypt, Ethiopia, Iran, Saudi Arabia, UAE joined; effective January 2024.
Indonesia joined: January 2025.
Current full membership (11): Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, UAE, Indonesia.
India's 2026 BRICS chairship theme: "Building for Resilience, Innovation, Cooperation and Sustainability."
India hosts the BRICS Foreign Ministers' Meeting on May 14–15, 2026, in New Delhi — the first major ministerial meeting under India's chairship.
A BRICS Leaders' Summit is expected later in 2026 under India's chairship.

Connection to this news: The presence of both Iran and the UAE as BRICS members creates an internal tension: Iran's Hormuz toll stance is deeply disruptive to UAE-based trade, complicating BRICS consensus-building and India's role as a bridge within the expanded bloc.

Key Facts & Data

Strait of Hormuz width at narrowest: approximately 21 nautical miles.
Global seaborne oil trade through Hormuz: approximately 20–25% (roughly 20–21 million barrels/day).
LNG trade through Hormuz: approximately 20% of global seaborne LNG.
Iran's reported toll demand: up to USD 2 million per vessel (as of early 2026).
UNCLOS signed: 1982; in force: 1994. India: ratified. Iran: signed but not ratified.
BRICS founding: 2009; expanded to 11 members by January 2025.
India's 2026 BRICS chairship theme: "Building for Resilience, Innovation, Cooperation and Sustainability."
BRICS FM Meeting: May 14–15, 2026, New Delhi.