Iran’s parliament passed a bill on Monday, planning to charge transit fees on ships in the past through the Strait of Hormuz, with the cost for a single oil tanker reaching up to 2 million US dollars. At the same time, the bill stipulates that ships associated with the United States, Israel, or any country that has previously imposed unilateral sanctions on Iran are banned from using the passage through. Shortly before the bill was approved, the White House clearly stated it opposed the measure.
(Backgrounder: On 4/6, Trump’s final ultimatum was, “If you don’t open the Strait of Hormuz, we will bomb power plants and oil wells.” Iran shot back: the US military went ashore with a guarantee that there would be no return)
(Additional context: Signs that the Strait of Hormuz may be opened? Iran’s Ministry of Foreign Affairs: non-hostile ships have already passed smoothly after “coordination”)
For an oil tanker to pass through the Strait of Hormuz, it may have to pay up to 2 million US dollars in transit fees. This is the new situation after Iran’s parliament enacted legislation on Monday. Tehran has officially turned this maritime choke point that carries one-fifth of global oil trade into a locked toll gate.
An official from Iran’s parliamentary committee on national security and foreign policy told local media that one more limitation of this regulatory plan is that any ships associated with the United States, Israel, or any country that has imposed unilateral sanctions on Iran are all included in the prohibited category.
In terms of fee settlement, Tehran insists on using the Iranian rial as the currency of payment, and will work with Oman to build a supporting legal framework to ensure that enforcement has a practical basis.
Shortly before the bill was approved, the White House had already clearly stated that the United States does not support Iran charging transit fees for the Strait of Hormuz. This makes the political implications of the bill’s passage even more sensitive. Under the Trump administration’s intense pressure, Iran’s parliament still chose to move forward with this legislation that has a confrontational tone.
The Strait of Hormuz is the world’s most important oil transportation chokepoint, through which roughly 20% of global oil trade passes. Once the transit-fee bill is formally implemented, the impact on global energy supply chains should not be underestimated.
The timing of this bill is highly sensitive. Earlier, Trump publicly issued a final ultimatum to Iran, saying that if the Strait of Hormuz is not opened by April 6, it would bomb Iran’s power plants and oil wells; Trump also said that the United States is negotiating with Iran’s “new government.”
As Iran’s parliament pushes for transit-fee legislation at this moment, observers generally interpret it as a positive counterattack to pressure from the US side, and it also reflects Tehran’s intention to try to increase leverage at the negotiating table. It is still unclear when the bill will formally take effect and how the enforcement mechanism will be implemented.