Iran Eyes Transit Fees on Strait of Hormuz Amid Rising Oil Prices

The Strait of Hormuz is set to become an even more critical chokepoint in global energy markets as Iran reportedly considers introducing transit fees for ships passing through the waterway. According to a Reuters report, Iranian lawmakers are considering charging tolls and taxes on countries using the strait for shipping, energy transit, and food supplies.

The Strait of Hormuz is responsible for nearly a fifth of the world's crude oil supply, with Brent crude futures expiring in May surging 5% to around $113 per barrel. This comes as the US West Texas Intermediate (WTI) crude futures maturing in May rose over 1%, hovering at $97 a barrel.

An adviser to Iran's new Supreme Leader stated that a new regime will be established after the end of the current war, allowing the country to apply maritime restrictions on sanctioned nations. This includes the US, which reimposed sanctions on Iran in 2018.