Iran has proposed charging fees for ships transiting the Strait of Hormuz as part of its proposals to end the ongoing war with Israel and the US. The move comes after Iran blocked most traffic through this crucial waterway, which is responsible for about a fifth of world oil supplies and other vital goods.
Key Takeaways
Iran has proposed charging fees for ships transiting the Strait of Hormuz as part of its efforts to end the ongoing war with Israel and the US. The move follows Iran's blockade of most traffic through this crucial waterway, which handles about a fifth of global oil supplies.
- Iran proposes variable fees based on ship type, cargo, and other conditions
- Oman in talks with Iran but no confirmed agreements reached
- Reports suggest at least one $2 million payment made for transit
- International reaction negative; US and Gulf states oppose the move
- Houthi threats to Red Sea shipping raise concerns of a second choke point crisis
The fee would vary depending on the type of ship, its cargo, and unspecified other prevailing conditions. According to TimesLIVE and Reuters, Iran's deputy foreign minister Kazem Gharibabdi said Tehran was drafting a protocol with Oman to require ships to obtain permits and licenses to pass through the Strait.
Oman has held talks with Iran on options to ensure smooth transit but did not confirm if any agreements had been reached. A small number of ships have passed through the Strait since it was blocked, with reports suggesting at least one payment of $2 million was made for a vessel to traverse the strait.
International reaction has been largely negative, with US President Donald Trump stating that free traffic of oil through the Strait must be part of any peace deal. Gulf states have also expressed concern, with the United Arab Emirates saying the waterway 'cannot be held hostage by any country' and Qatar's foreign ministry emphasizing the right to use the Strait freely.
Adding to regional tensions, Iran-backed Houthi forces in Yemen are threatening to disrupt shipping through the Bab al-Mandeb strait in the Red Sea. This narrow corridor links the Red Sea to the Gulf of Aden and handles roughly 12% of global seaborne oil trade. Analysts warn that if Houthi attacks resume, it could create a second major disruption point for global energy markets and supply chains.
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