Iran Considers Levy on Ships Passing Through the Strait of Hormuz

Istanbul - Iran is considering a draft law that would require countries to pay fees for ships crossing the strategically important Strait of Hormuz, Iranian media reported on Thursday. According to the semi-official ISNA news agency, the proposal suggests imposing tariffs on ships using that vital sea route, which is one of the most important paths for global energy supplies. A member of parliament in Tehran said the proposal aims to mandate payments and taxes to Iran if the strait is used as a “safe passage” for shipping, energy transportation, and food supply chains. He stated that countries benefiting from the security of shipping in the strait “must pay fees and taxes to Iran.” This proposal has emerged amid increasing regional escalation since Israel and the United States (US) launched joint attacks against Iran on 28 February, which reportedly killed around 1,300 people, including the Supreme Leader at the time, Ali Khamenei. Iran retaliated with drone and missile strikes in various parts of the region and effectively closed the Strait of Hormuz, the main oil shipping route that typically handles around 20 million barrels per day and about 20 percent of global liquefied natural gas trade, ultimately shaking the world’s energy markets.