The idea of Iran – or any nation – demanding a compulsory toll from vessels transiting the vital Strait of Hormuz waterway is anathema to both the neighbouring Gulf Arab states and to the global shipping industry.

Ever since 1968, when it was ratified by the International Maritime Organisation, a carefully worked-out system has been in place by which vessels pass through the strait to pick up their cargoes from Gulf ports and terminals.

That system is known as the Traffic Separation Scheme (TSS).

In the narrow, normally congested channel between the coastlines of Iran to the north and Oman to the south, inbound ships pass one way and outbound ships pass in the opposite direction, separated by a buffer zone of two miles to avoid collisions. It works.

But the Islamic Republic, which has managed to survive more than 20,000 combined US and Israeli airstrikes over a period of 39 days, is now pushing to change the whole paradigm of global trade in the Gulf.

Instead of the pre-existing TSS, it is demanding that – when the strait is open - all shipping follows a different route, designated by the IRGC Navy, forcing it to pass close to the Iranian islands of Larak and Qeshm.

There, says Iran, they will be checked over by naval officers and pay a fee according to the size and value of their cargo.

(Source: BBC)