Iran pushes plan to charge billions for Strait of Hormuz management as Trump denies fee scheme - report
According to the Wall Street Journal, Iran is leveraging control of the critical waterway to extract revenue through security and environmental service charges
Iran is pushing to generate $40 billion annually by charging for security and environmental services in the Strait of Hormuz as part of negotiations to permanently manage the critical waterway. This is according to officials familiar with the matter who spoke with the Wall Street Journal. The Islamic Republic is pitching the revenue-sharing model to Persian Gulf neighbors and countries, including China and Egypt, as it positions itself to control the global oil artery it blockaded during the recent war with the US.
Iran's negotiations over Hormuz management would give Tehran unprecedented control over a chokepoint through which 20 percent of global oil normally flows. The regime is examining international models, including Turkey's Dardanelles arrangement and the Malacca Straits Patrol, to justify the arrangement.
Turkey charges ships a tax called the gold franc for passage through the Dardanelles under a 1936 convention. The Malacca model involves cost-sharing among Asian nations and a private Japanese foundation to fund multinational maritime patrols to combat piracy.
President Trump contradicted the reports on Wednesday, insisting Iran has committed to toll-free passage. "There are no tolls, no insurance costs, and no other charges of any kind being sought or received by Iran on ships traveling the Strait of Hormuz," Trump posted on social media, warning that if the information was false, "negotiations would end, immediately!"
Secretary of State Marco Rubio directly rejected Iran's vision during Middle East talks this week. "No country on earth has the right to charge for the use of international waterways, and that will never be an acceptable condition of any deal," Rubio said Thursday in Bahrain. He warned that tolerating such charges would set a precedent that spreads "like a contagion and cause chaos."
The memorandum of understanding signed June 14 guarantees "safe passage of commercial vessels with no charge for 60 days only" from the Persian Gulf to the Sea of Oman, leaving the possibility of fee arrangements after negotiations conclude.
Iran's Foreign Ministry spokesperson said earlier the country could charge fees "in exchange for the services that are provided" to transiting ships. The accord also includes lifting of sanctions and access to private funding, contingent on Iran meeting its obligations.
Traffic through the strait on Wednesday reached its highest volume since the war began, with approximately 70 crossings recorded.