What rules govern international waters?
Can Iran legally restrict transit through the Strait of Hormuz? Is the U.S. blockade of the strait lawful? What is the legal position on interceptions? And in cases such as this, which organisation steps in and how? What can happen next?
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Context
Amid an escalation in geopolitical conflict, Iran recently detained two ships in the Strait of Hormuz in response to the US seizing Iranian-linked vessels. Iran instituted a toll fee and restricted transit for several merchant ships traversing the Strait, significantly impacting global maritime trade flows. The incident highlights vulnerabilities in international shipping and has sparked debates regarding the application of international maritime laws, specifically the United Nations Convention on the Law of the Sea (UNCLOS).
UPSC Perspectives
Governance
The rules governing the world's oceans are dictated by the [United Nations Convention on the Law of the Sea] (UNCLOS), a comprehensive international framework established in 1982. A key tenet of UNCLOS is the principle of freedom of navigation, asserting that the high seas are a shared global commons. Under UNCLOS, international straits used for navigation, such as the Strait of Hormuz, are subject to the regime of transit passage. This means that while coastal states like Iran and Oman retain sovereignty over their territorial waters, they must permit foreign vessels continuous, expeditious, and unhindered transit. Iran's imposition of tolls and conditional access violates this principle. For UPSC, it is vital to understand the difference between 'transit passage' (applicable to straits) and innocent passage (applicable to standard territorial waters), as well as the jurisdiction of the [International Maritime Organization] in regulating global shipping.
Geopolitical
The [Strait of Hormuz] is one of the world's most critical maritime chokepoints, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. Since the territorial waters of Iran and Oman overlap at its narrowest point (21 nautical miles wide), there are no high seas within the strait. Control over this strait gives Iran significant geopolitical leverage. During conflicts, as seen in the recent escalation where Iran detained ships following US seizures, the strait becomes a flashpoint. While the US enforces blockades claiming customary international law rights to transit, Iran contests these interpretations, primarily because it is a signatory but has not ratified UNCLOS. Aspirants should map major global chokepoints (like Malacca, Bab-el-Mandeb, and Hormuz) and analyze how geopolitical rivalries threaten the security of sea lanes of communication (SLOCs).
Economic
The disruption of navigation in the Strait of Hormuz has profound implications for global energy security and trade. According to international energy data, a substantial portion of the world's daily oil supply, along with significant regional food imports, transits through this narrow corridor. Iran's decision to restrict passage and charge million-dollar tolls drastically reduces maritime traffic, directly impacting global supply chains. Interestingly, India temporarily benefited due to diplomatic exemptions, highlighting the role of bilateral relations in navigating geopolitical crises. From an economic perspective, such disruptions increase freight insurance premiums, delay cargo deliveries, and can cause global inflation due to volatile oil prices. UPSC frequently asks about the impact of international conflicts on India's macroeconomic stability and energy security.