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Hormuz Tensions To Escalate? Iran Moves To Impose Service Fees On Ships Transiting Strait

Under the article, vessels belonging to countries permitted to use the strait will be required to pay fees for services provided by Iran.

Hormuz Tensions To Escalate? Iran Moves To Impose Service Fees On Ships Transiting Strait
The proposed fee structure emerges at a moment of sharpening confrontation over the strait.
NDTV Profit/ AI Generated

Iran's parliament has approved a draft provision to charge ships transiting the Strait of Hormuz for services rendered by Tehran, a move that comes amid escalating economic hostilities between Washington and Tehran.

According to the state-run Islamic Republic News Agency (IRNA), the National Security and Foreign Policy Commission of the Iranian parliament finalised Article 3 of its "Strategic Action Plan for Security and Development of the Strait of Hormuz" during a session on Sunday.

Under the article, vessels belonging to countries permitted to use the strait will be required to pay fees for services provided by Iran.

"Under Article 3, fees will be charged for services including maritime, environmental, fuel supply in special conditions, insurance, safety, and other services provided in the Strait of Hormuz," commission spokesperson Hassan Ghashghavi was quoted as saying by IRNA.

He said the charges would be collected in Iranian rials or "any other currency deemed appropriate by the Islamic Republic of Iran."

Ghashghavi added that the plan "recognises the freedom of navigation in accordance with international laws and regulations" while also emphasising "respect for the security of coastal countries and their sovereignty, and the prevention of violations of these rights," IRNA reported.

ALSO READ: Trump Declares Strait Of Hormuz 'New US Territory', Shares Map To Claim Crucial Oil Route

He cited Oman's 1982 declaration under the UN Convention on the Law of the Sea, which stipulated that the pact's provisions must not compromise a coastal state's sovereignty or security, as precedent for Tehran's position on the waterway.

The proposed fee structure emerges at a moment of sharpening confrontation over the strait, through which roughly a fifth of the world's oil supply passes.

It comes amid US Treasury Secretary Scott Bessent's announcement of an "economic D-Day" targeting Iran's oil trade, banking channels and foreign partners.

With a US naval blockade already in place in the region since the two countries' six-month conflict, any move by Tehran to formally regulate or monetise passage through Hormuz could have significant implications for global shipping costs and for India, which relies heavily on Gulf energy supplies routed through the strait.

ALSO READ: Iran's Warning To US Allies: Join Economic War, Face Retaliation — 'Not a Single Drop of Oil' Will Be Exported'

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