The Strait of Hormuz blockade, sustained for roughly two months by Iranian and US forces in the Persian Gulf, has driven up global oil prices and triggered a wider geopolitical debate: should nations bordering the Indian Ocean Region (IOR) impose similar restrictions or toll charges on their own strategic sea-routes? The question, once largely academic, is now being openly discussed by governments from Singapore to Indonesia, according to a report by the portal PRF.

Background: The Hormuz Crisis

The Strait of Hormuz has been at the epicentre of the US-Iran confrontation, with the standoff sending shockwaves through oil-dependent economies worldwide. US forces recently launched 'Project Freedom' to reopen the waterway, but the operation was paused amid prospects of a peace deal between the two nations. Separately, Iran has floated the idea of levying fees on all vessels transiting through its ports — a move that has catalysed a wider conversation across the IOR.

IOR Nations Weigh a Tit-for-Tat Response

According to the PRF report, IOR countries have not yet articulated a formal policy, but Iran's tactics have prompted discussions on ensuring freedom of navigation — and potentially mirroring Iran's approach. Singapore's Foreign Minister Vivian Balakrishnan drew attention to a key geographic contrast: the Strait of Hormuz is approximately 21 miles wide, while the Strait of Malacca at its narrowest is just two miles wide — making it an even more potent chokepoint.

While Balakrishnan stopped short of suggesting Singapore would levy transit fees, he called on all nations to rigorously adhere to Article 44 of UNCLOS, which obligates states bordering narrow sea-routes to ensure there is no suspension of transit passage.

Indonesia and the Malacca Toll Debate

Indonesia's President Prabowo Subianto underscored the stakes, noting that the Strait of Hormuz determines the fate of many nations, including oil prices, and asking: "Do we realise that 70 per cent of East Asia's energy needs and 70 per cent of its trade pass through the Indonesian straits?" Meanwhile, Indonesia's Finance Minister reportedly stated that his country could take inspiration from Iran and collect substantive fees from ships passing through the Strait of Malacca, with proceeds split among Indonesia, Malaysia, and Singapore.

Thailand's Land Bridge Plan

Thailand, too, is drawing lessons from the Hormuz closure. The country is reportedly planning to build a land bridge connecting the Andaman Sea and the Gulf of Thailand — a long-discussed infrastructure project that has gained renewed urgency in the current climate.

India's Strategic Stakes and the Way Forward

For India, the implications are enormous. An estimated 95 per cent of India's trade by volume and approximately 70 per cent by value transits through the IOR. The region comprises around 33 nations, 2.9 billion people, and handles 42 per cent of global crude oil. Key chokepoints beyond Hormuz — including Bab el-Mandeb, the Strait of Malacca, the Sunda Strait, and the Lombok Strait — all define the movement of goods across the region.

India's External Affairs Minister S. Jaishankar has called on IOR countries to work towards greater collective resilience by building trusted partnerships. The PRF analysis warns that if IOR nations emulate Iran and levy tolls on ships transiting international straits, it would make international trade significantly costlier and generate considerable geopolitical instability. With no formal policy yet announced by any IOR state, the debate remains in its early stages — but the direction of travel is unmistakable.