Iran Considers Plan to Impose Tolls on Strait of Hormuz

The Iranian government is considering a draft law that would require countries to pay fees for ships transiting the strategically vital Strait of Hormuz, Iranian media reported on Thursday. According to the semi-official ISNA news agency, the proposal suggests imposing tariffs on vessels using this critical maritime route, one of the most important pathways for global energy supplies. A member of parliament in Tehran stated that 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 emphasised that countries benefiting from the security of shipping in the strait must pay fees and taxes to Iran. This proposal arises amid rising regional escalation since Israel and the United States (US) launched joint strikes against Iran on 28 February, which reportedly killed around 1,300 people, including the then Supreme Leader, Ali Khamenei. Iran retaliated with drone and missile strikes across various regional areas and effectively closed the Strait of Hormuz, the main oil shipping route that typically handles about 20 million barrels per day and around 20 percent of global liquefied natural gas trade, ultimately shaking the world's energy markets. According to Azis, the geographical location of the Strait of Hormuz, which channels one-fifth of the world's oil supply, makes it the most vulnerable point in modern geopolitics. Escalation of geopolitical tensions between Iran and Israel-the United States, impacting the threat of closing the Strait of Hormuz, has become a serious concern for national energy stability. Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), pumps about 4.5 percent of global oil supplies.