Iran drafts law to impose tolls for transiting Strait of Hormuz

Iran's parliament is developing a new law that would require ships to pay a toll for security while transiting through the Strait of Hormuz. This information comes from the semi-official Fars news agency, which reported that the draft bill is expected to be completed next week, as stated by an unnamed lawmaker. The lawmaker mentioned that the proposal aims to officially recognize Iran's control and authority over the Strait of Hormuz, while also generating revenue for the country through these tolls. This initiative to impose a transit fee is happening as the conflict in the Middle East nears four weeks. The Strait of Hormuz is crucial since it carries about 20% of the world's oil. Currently, tanker traffic has nearly stopped, with only a few ships, mostly from China and Iran, managing to pass through. The situation has led to a reduction in oil production in the Persian Gulf, and damage to local refineries has been reported due to the ongoing war. As a result, oil prices have increased significantly, with the global benchmark Brent reaching over $114 a barrel earlier this week. The Trump administration is also analyzing the potential impact if prices were to rise to $200 per barrel on the economy.