Iran lawmakers are considering enacting sweeping, punitive laws that would block ships from the U.S., Israel and other undefined “hostile” nations from transiting the disputed waters of the Strait of Hormuz, the country’s national news service reports.
Penalty fines are also being considered in the act of revenge as Iran sees itself as the sole agent policing shipping traffic in the region – waters which are a passage for roughly a fifth of the world’s oil supply as well as a host of other essential commodities including liquified natural gas (LNG).
The plan would impose fees of up to seven percent of cargo value on commercial vessels that pass through the strait. It would also fine ships 20 percent of cargo if they violate Iran’s conditions.
How disruption in Strait of Hormuz multiplies LNG shipping costs. Disruptions to transit through the Strait of Hormuz pushed vessel charter rates and marine fuel costs to their highest levels since the peak of the 2022 energy crisis. (Murat Usubali/Anadolu via Getty Images)
Reports indicate Tehran’s semi-official Tasnim News Agency carried the news the proposed legislation, dubbed the “Strategic Action for the Security and Sustainable Development of the Strait of Hormuz and the Persian Gulf,” now under review by parliament’s National Security and Foreign Policy Committee, Ynetnews reports.
Abbas Salimi, a member of parliament’s presiding board, has reportedly affirmed lawmakers are reviewing the draft bill before it moves forward.
According to the Tasnim agency, the agreement states as per the Ynet News report:
Passage of vessels belonging to the U.S., Israel and other hostile nations through the strait will be banned. Cargo related to Israel, whether military or civilian, will not be allowed to pass.”
It also states that “countries that have caused damage to Iran will not be permitted to pass until compensation is paid.
Heavy fines, including up to 20 percent of the cargo value, are expected for violators.
The U.S. is likely to outright reject the Iranian law if passed, as Washington and most of the world considers the strait an international waterway open to ships of all countries without punitive impost, the NY Post observes.
The outlet goes on to note the proposal comes as Tehran seeks to tighten its grip over the Strait of Hormuz after months of war with the United States brought shipping levels down to just a trickle of pre-war traffic.
Meanwhile Iran and Oman negotiate a separate framework for managing maritime traffic through the strait, possibly creating one temporary, central shipping lane jointly managed by the two countries.
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U.S. President Donald Trump said Tuesday negotiations to reopen the strait were progressing in spit of Iran’s hostile public threats, as Breitbart News reported.
Turkey’s foreign minister, who has been assisting in mediations, affirmed a temporary agreement between the U.S. and Iran could be announced soon.