Iran to charge ships passing Strait of Hormuz — raising risks of global recession

Iran’s Strait of Hormuz Tolls: A New Threat to Global Economic Stability

In a significant development, Iran’s parliament has given the green light to a new bill that mandates tolls for ships navigating the Strait of Hormuz. This measure, with charges reaching up to $2 million per vessel, poses potential disruptions to approximately 20% of global oil and gas transportation.

The legislation, which proposes transit fees for every ship passing through this crucial maritime passage in the Persian Gulf, received approval from the National Security and Foreign Policy Committee, as reported by Iranian state media on Monday.

According to the state-run Islamic Republic of Iran Broadcasting (IRIB), the initiative aims to underscore Tehran’s “sovereign role” over this strategic waterway.

Russian state media outlet TASS, which has shown support for Iran, indicated that the bill is likely to receive final approval from parliament in the near future.

While the fees are to be settled in Iranian rials, specific pricing details have yet to be disclosed.

This legislation also seeks to enhance the monitoring and regulation of maritime traffic through the strait, a vital corridor for about 20% of the world’s oil and gas supply.

It would also include a ban on transit by vessels from countries that have imposed sanctions on Iran, including the United States and Israel.

The bill features measures for cooperation with Oman, which is located on the opposite side of the strait.

Selective access would also be allowed for certain countries friendly to the Iranian regime, including China, Russia, India, Pakistan, Iraq, and Bangladesh.

Since the start of the recent conflict in Iran on Feb. 28, maritime traffic through the strait has plunged by about 95%.

This has sent global oil prices skyrocketing, as the cost of a barrel of crude oil spiked at over $100.

Some ships have paid Iranian authorities about $2 million each to pass through the waterway unscathed, the Financial Times reported.

The Strait of Hormuz, which is just 24 miles wide at its narrowest point and 104 miles long, has long been one of the world’s most crucial waterways.

All ships are guaranteed free passage through international straits under the UNCLOS (United Nations Convention on the Law of the Sea), which bans the imposition of transit fees.

However, Iran has claimed it isn’t bound by this because even though it signed the treaty in 1982, it didn’t ratify it.

It comes after President Trump told The Post that the Strait of Hormuz will reopen “automatically” after the end of the war.

“I think it’ll automatically open, but my attitude is, I’ve obliterated the country. They have no strength left, and let the countries that are using the strait, let them go and open it… because I would imagine whoever’s controlling the oil will be very happy to open the strait,” President Trump told The Post on Tuesday.

The president has vowed to prioitize ending Iran’s control over the strait, and preventing it from ever holding the global economy to ransom again.

“We are taking the Strait back. It’s guaranteed, and they will never blackmail us on that strait,” one senior administration official told The Post last week. “You can take it to the bank.”

With Post wires.

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