Iran Seeks to Monetize Strategic Position with Transit Fee on Strait of Hormuz

Tehran: Amid the raging conflict in West Asia, Iran has made a fresh bid to assert its dominance over the Strait of Hormuz, the world's most important sea route. The Iranian parliament is currently considering a controversial bill that would levy a "transit fee" or toll on all commercial vessels passing through the 33-kilometre-wide narrow passageway. The bill, if passed, could drastically increase global shipping and energy transportation costs. The Strait of Hormuz is the backbone of world energy security. Approximately one-fifth (20%) of the world's total oil and liquefied natural gas (LNG) shipments pass through it. Major producers such as Saudi Arabia, Iraq, the UAE, and Kuwait rely on the waterway to reach Asian and Western markets. Iran is now seeking to monetize its strategic position in the region.