The Islamic Republic now argues that ships must pay “tolls” to transit the Strait of Hormuz. The Iranian military may fire upon, hijack, or destroy those who refuse. It is the greatest challenge to freedom of navigation in recent decades.
The idea is not new. Yemenis and Omanis spoke of an invisible line drawn through the Gulf of Aden. Iranian intelligence ships would identify container traffic heading to the Bab el-Mandeb and up through the Red Sea to the Suez Canal and, if they crossed a certain point, the Houthis would demand protection. If they paid, they could continue unheeded. Those who did not would face Houthi rockets, speedboats, or drones. While the Western press often depicted shipping attacks as random, they were anything but.
The Houthi tolls—which also presumably benefited Islamic Revolutionary Guard Corps coffers—predate the Iran war.
European countries may now blame President Donald Trump for precipitating an Iranian reaction, but this is dishonest: The Houthi tolls—which also presumably benefited Islamic Revolutionary Guard Corps coffers—predate the Iran war. Ships transiting the Suez Canal, like the Panama Canal, must pay tolls but these are different, as the canals are manmade and operated by companies. While the Bosporus looks like a canal, in terms of its width, at times it is natural and so the is free navigation.
The Europeans long have been a weak link on Iran. In 1993, German Foreign Minister Klaus Kinkel launched a “critical dialogue” with Iran. His idea was simple: Rather than punish or sanction Iran for its terrorism and human rights abuses, Europe would engage with it, using dialogue to change Tehran’s behavior. His move came just a year after a high-profile Iranian assassination in the heart of Berlin. German companies poured into Iran, and Klinkel and his European colleagues quickly forgot about the “critical” aspect of their dialogue, confusing tough confrontation with sycophancy.
Today, not only Russia and China pay tolls to the Islamic Revolutionary Guard Corps, but so, too, do Spanish and other West European shipping companies. Trump should do more than bluster, because far more is at stake than his ego. Put aside that Iran abuts only one side of the Strait of Hormuz; Oman provides the other shore: The danger of Iranian actions is not just their erosion of freedom of navigation, but also their direct financing of Islamic Revolutionary Guard Corps terror.
This means that any payment of “tolls” is direct financing of a sanctioned entity. Compulsion is no excuse.
The U.S. designates the entirety of the Islamic Revolutionary Guard Corps. This means that any payment of “tolls” is direct financing of a sanctioned entity. Compulsion is no excuse. Insurance executives tell their clients if held hostage by ransomware, it may seem tempting to pay the ransom, rather than to absorb the damage, but if those funds end up in North Korea, for example, the U.S. Department of the Treasury can impose criminal penalties for sanctions violations.
Trump, therefore, should direct the Department of the Treasury: Every ship that pays a “toll” to Iran will be subject to sanctions and seizure. The U.S. government will name and sanction its captain and company executives. The U.S. might seize their assets to help pay court awards to victims of terror. Spanish or French diplomats may bluster, and Russian and Chinese officials certainly will whine, but European chief executive officers point out that they are accountable to their stockholders, not a political class facing no accountability beyond the ballot box.
If the White House will defend free transit through the Taiwan Strait, the Strait of Malacca, the Strait of Gibraltar and more, it is time to stand up to craven and weak European officials who are today more a liability to the free world than its defender.
