Iran to Tax Hormuz Ships, Risking 20% of Global Oil Supply

Iran will require all ships transiting the Strait of Hormuz to pay a fee, a senior parliamentary official said, formalizing a toll system that could add significant costs to the 20% of global oil supplies that pass through the waterway. The move sent Brent crude futures climbing toward $100 a barrel as markets priced in higher transit risk and the potential for further supply disruptions.

"All hope to pass through the Strait of Hormuz must pay a fee," Aziz, Chairman of the National Security and Foreign Policy Committee of the Iranian Islamic Consultative Assembly, said in a televised interview on April 26. He added that the strait "has become one of the important pillars of Iran's power."

The announcement follows weeks of escalating naval confrontations between Tehran and Washington. Since the US imposed a naval blockade on Iranian ports on April 13, American forces have redirected at least 31 Iran-linked vessels, according to U.S. Central Command. Iran, which has controlled passage out of the strait since early March, has responded by seizing foreign-flagged container ships and firing on others, creating a standoff where rival militaries control entry and exit.

At stake is the principle of free navigation and the stability of global energy markets. The new fees, which Iran had already begun demanding in cryptocurrency or yuan from some vessels, could set a dangerous precedent for other strategic waterways and add a lasting risk premium to oil prices, fueling global inflation.

A High-Stakes Toll on a Vital Waterway

Iran's decision to codify the transit fees marks a significant escalation in its economic warfare with the U.S. The move comes after Iran's oil export revenue surged over 40% in the past month to nearly $5 billion despite the conflict, as prices rose on war risk, according to data from Kpler cited by Al Jazeera. Tehran is leveraging its geographic control over the 21-nautical-mile-wide strait to counteract the US blockade.

The situation has created a trap for commercial shipping. Vessels need approval from both the US Navy to enter the Gulf and Iran's Islamic Revolutionary Guard Corps (IRGC) to exit. This has left hundreds of ships stranded and created opportunities for scammers demanding cryptocurrency payments for safe passage, according to a warning from maritime risk firm MARISKS.

"What we are seeing in the Strait of Hormuz is not strategic mastery but mutual brinkmanship," Ali Vaez, Iran project director for the International Crisis Group, told Al Jazeera. "The danger is that neither believes it can afford to blink, and that makes every incident at sea a potential trigger for wider escalation."

Global Ripple Effects from Malacca to Singapore

The fallout from Iran's policy is already echoing across global supply chains. In a sign of how quickly the norms around freedom of navigation are eroding, Indonesia's finance minister suggested on April 22 that his country could impose similar levies on ships in the Strait of Malacca, a waterway that carries 30% of global trade.

"If we split [income from levies] three ways—Indonesia, Malaysia, and Singapore—it could be quite substantial," Purbaya Yudhi Sadewa said at a Jakarta symposium, according to Fortune.

The suggestion drew an immediate rebuke from Singapore, whose economy is existentially dependent on free maritime trade. "The right of transit passage is guaranteed for everyone," Singapore's Minister of Foreign Affairs Vivian Balakrishnan said. "We will not participate in any attempts to close or interdict or to impose tolls in our neighborhood." Singapore had previously refused to negotiate with Iran over passage through Hormuz, calling its closure a violation of international law.

The debate highlights the broader implications of Iran's actions. By successfully turning the Strait of Hormuz into a source of revenue and a tool of state power, Tehran is challenging a cornerstone of the global economic order. If the principle of free passage through international straits is replaced by a pay-to-pass system, it could permanently increase the cost of global trade and introduce a new layer of geopolitical instability.

This article is for informational purposes only and does not constitute investment advice.