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Iran drafts law to impose tolls for transiting Strait of Hormuz

The Iranian parliament is working on a draft bill to charge a fee in exchange for providing security to ships passing through the Strait of Hormuz, according to the semi-official Fars news agency. 

The plan is expected to be finalized next week, the agency said, citing an unnamed lawmaker. ‘‘We are pursuing a proposal in which Iran’s sovereignty, control, and oversight in the Strait of Hormuz are formally recognized in law, and through the collection of tolls, a source of revenue is also created for the country,’‘ Fars cited the lawmaker as saying.

Iran’s move to formalize a transit fee for the vital Strait of Hormuz comes as the war in the Middle East approaches the end of its fourth week. 

The waterway through which a fifth of the world’s oil passes has been all but closed to tanker traffic, with only a trickle of ships, mainly with Chinese and Iranian affiliation, getting through.

The disruptions in Hormuz have resulted in forced shut-ins of Persian Gulf oil production, while refineries in the area have also been damaged in the war. 

Oil prices have surged as a result, with global benchmark Brent topping $114 a barrel earlier this week, and the Trump administration examining what a potential spike to $200 would mean for the economy.

Source: adaderana.lk

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