Singapore has flatly rejected any suggestion it would pay transit fees to Iran for passage through the Strait of Hormuz, with Foreign Minister Vivian Balakrishnan telling parliament the right of free navigation is enshrined in international law — not a toll concession for Tehran to extract. Responding to a parliamentary question, Balakrishnan said Singapore would continue engaging Iran diplomatically but ruled out any negotiation over safe passage fees. "It is not a privilege to be granted by the bordering state, it's not a licence to be supplicated for, it is not a toll to be paid," he said. The remarks come as Iran has imposed what shipping sources describe as a de facto toll system — administered by the Iranian Revolutionary Guard Corps — in the wake of US and Israeli strikes on Iranian infrastructure. Reports suggest demands of up to $2mn per vessel, payable in cryptocurrency or yuan, ostensibly to fund reconstruction. Traffic through the strait plummeted by an estimated 90% during peak hostilities, with only partial recovery following a tentative ceasefire. Tehran, which signed but never ratified the UN Convention on the Law of the Sea (UNCLOS), maintains it is not bound by its transit passage provisions and retains the right to regulate movement through its territorial waters on security grounds. Balakrishnan dismissed that argument, saying non-ratification was not a "get-out-of-jail-free card" and that the principle of free transit applied universally as customary international law. Singapore's hard line is rooted as much in strategic interest as legal principle. Balakrishnan drew an explicit parallel with the Strait of Malacca and the Strait of Singapore — chokepoints that carry roughly a quarter to two-fifths of global seaborne trade, including nearly half of China's oil imports. Were Hormuz tolls to go unchallenged, he warned, similar demands could follow on the very waterways Singapore depends on for its economic existence. The shipping industry has broadly backed Singapore's stance, with insurers and major operators advised against payment to avoid legitimising the practice. A clip of Balakrishnan's remarks, posted to social media on April 11, drew more than 3mn views and sharp debate over the tension between legal norms and geopolitical realities.
