Iran Claims to Collect US$2 Million Transit Fee in Strait of Hormuz

Iran claims to have started collecting a transit fee of US$2 million, or approximately Rp32 billion, from several ships crossing the Strait of Hormuz as a form of asserting new sovereignty over the strategic route. This was stated by Alaeddin Boroujerdi, a member of Iran’s parliamentary National Security and Foreign Policy Committee. Boroujerdi said that Iran is now implementing what he called a new concept of sovereignty over the strait after 47 years, including imposing fees on certain ships. “Collecting US$2 million as a transit fee from some ships crossing the strait reflects Iran’s strength,” Boroujerdi said, quoted from TRT World. Since early March, Iran is said to have effectively closed the Strait of Hormuz to most ships. This route is one of the world’s main energy shipping lanes, typically handling around 20 million barrels of oil per day and about 20 percent of global liquefied natural gas trade. The closure has impacted increased shipping and insurance costs, while driving up oil prices and triggering concerns about the global economic situation.