Newsletters
Iran is working on new legislation that could require ships to pay transit fees and taxes when passing through the Strait of Hormuz, which is effectively closed since U.S.-Israeli attacks began on the country, according to state media, citing a member of parliament.
The draft law is expected to be submitted to parliament for debate and outlines conditions under which the strategic waterway would be used as a secure route for maritime traffic. Under the proposal, countries using the strait for shipping, energy transit, and food supply routes would be obligated to pay fees to Iran.
"We will define a new system for the Strait of Hormuz," said Mohammad Mokhber, an adviser to Iran’s Supreme Leader, without providing further details.
Before the conflict began on Feb. 28, roughly 20% of global oil and energy shipments passed through the Strait of Hormuz. The disruption has pushed oil prices close to $120 per barrel at peak levels, with Brent crude trading around $114 per barrel as of Thursday.
European natural gas markets have also reacted sharply, with futures at the Netherlands-based TTF hub more than doubling to above €70 ($80.14) per megawatt-hour at their peak before easing to €63.5 per megawatt-hour on Thursday.
Separately, U.S. media, citing a senior Iranian official, earlier reported that Iran is considering allowing a limited number of oil tankers to pass through the strait on the condition that transactions are conducted in Chinese yuan.
The proposal is seen as part of Tehran’s broader effort to manage and control the flow of oil through the strategic waterway amid ongoing tensions, the CNN report said.
Such a move would mark a shift from the global norm, where oil is primarily traded in U.S. dollars. While some sanctioned Russian oil has been priced in rubles or yuan, the dollar remains the world’s main reserve currency. China has for years pushed to expand the yuan’s role in global energy trade, but its use remains limited compared to the dollar.
Set as preferred source
Set as preferred source
1 min read
1 min read
