Iran Advances Possibility of Imposing Transit Fees in Hormuz Strait

Iran's parliament has progressed to the final approval stage for a provision that would allow the imposition of transit fees on vessels passing through the Strait of Hormuz. The issue of transit fees has resurfaced in negotiations between Iran and Oman regarding this critical route for energy and maritime transport. As of August 31, the prediction market reflects a 5.5% chance that Iran and Oman will reach an agreement on the management of Hormuz, and a 3.5% chance that Iran will impose transit fees. The Strait of Hormuz is a maritime chokepoint where the flow of crude oil and liquefied natural gas (LNG) from Middle Eastern oil-producing countries is concentrated. In 2022, the average daily volume of crude oil, condensate, and petroleum products passing through this strait was 21 million barrels, accounting for approximately 21% of global liquid fuel consumption. Iran has demanded a transit fee equivalent to about 5% of the cargo value, but the United States has rejected this. An Iranian Foreign Ministry spokesperson stated that details such as the distribution of transit fees are not currently under discussion. This provision is not a confirmed measure that will be implemented immediately.

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