Iran Plans To Impose Toll To Give Safe Passage To Vessels Through Strait Of Hormuz

The Iranian government is planning to impose a fee to allow safe passage to vessels passing through the Strait of Hormuz.

The Iranian parliament is already working on a draft bill to implement the toll, according to a report by Bloomberg, which cited Iran’s semi-official Fars news agency.

According to the report, the plan to impose the toll is expected to be finalised by next week. While vessels stranded in the Gulf region are reportedly paying hefty amounts to seek safe passage through the crucial waterway, the Iranian law will legitimise its oversight of the Strait.

The Strait of Hormuz is one of the key passages for trading oil and gas, as it accounts for almost 20 percent of the world’s energy supplies. The Strait has effectively been shut since the start of the United States-Israel-Iran war in late February.

Only a handful of vessels have been allowed to pass through the waterway as countries and companies across the world seek to bring back stranded ships in the region.

Iran has leveraged control over the Strait in its fight against the US and Israel. The Strait has now become a key point in de-escalation talks between the two sides as pressure mounts on Donald Trump amid rising energy prices.

Oil prices have jumped over 50 percent since the start of the war, reaching as high as $120 per barrel from $65 per barrel earlier. While the International Energy Agency has decided to release over 800 million barrels of crude from the strategic reserves of its member nations, the move has been inadequate to cool down prices.

Oil is still hovering around $105 per barrel as the war continues despite ongoing peace talks. According to experts, if Iran legalises the imposition of a toll in the Strait, the cost of energy would rise even if conditions normalise after the end of hostilities.