Iran requires insurance on ships using Strait of Hormuz, fees likely to follow

Iran's Persian Gulf Strait Authority has imposed mandatory insurance requirements on all vessels transiting the Strait of Hormuz, with coverage initially free for 60 days but fees expected thereafter—a move that effectively challenges a US-Iran agreement guaranteeing toll-free passage. The policy also requires ships to use Iran's designated northern route near Larak Island, with threats of penalties for non-compliance, and represents Tehran's assertive attempt to control transit conditions through one of the world's most critical chokepoints. Shipowners, regional states, and the IMO have warned that the policy could destabilize international transit norms, while negotiations continue on establishing a long-term framework.