Iran parliament pushes plan to levy transit fees in the Strait of Hormuz…clears committee

Reported by Iran’s state broadcaster IRIB

Cleared committee, expected to pass plenary session

Iran’s parliament is pushing a plan to levy transit fees on vessels passing through the Strait of Hormuz, Iran’s Islamic Republic of Iran Broadcasting (IRIB) reported on the 30th (local time).

According to IRIB, the Iranian parliament’s National Security and Foreign Policy Committee approved a bill on the day to impose transit fees on ships transiting the Strait of Hormuz. The broadcaster said the move aims to strengthen Iran’s “sovereign role” in the waterway and the role of the Iranian military. Russia’s TASS added that passage at the plenary session is expected “soon.”

The bill stipulates tighter monitoring and control of maritime traffic through the strait. It includes provisions on navigational safety and protection of sea lanes, as well as fiscal rules requiring all transiting vessels to pay the fee in Iranian rials.

The bill is also said to include a ban on the passage of vessels registered in the United States and Israel. AFP reported that plans also include measures for cooperation with Oman, located on the opposite side of the strait. It was also reported to include a ban on transit by vessels from other countries that impose sanctions on Iran.

The Strait of Hormuz is a strategic chokepoint through which about 20% of the world’s crude oil and gas flows. However, since the outbreak of the Iran war, the number of voyages by ships transiting the strait has plunged by about 95%. Earlier, the Financial Times (FT) and others reported that some vessels paid Iran about $2 million (about 3 billion won) to pass through.

The Strait of Hormuz is an international strait. UNCLOS (the United Nations Convention on the Law of the Sea) guarantees the right of transit passage through international straits and prohibits the imposition of transit fees. Iran, however, argues it is not bound because it signed in 1982 but did not ratify the treaty.

Washington=Correspondent Lee Sang-eun selee@hankyung.com