Iran To Charge $2 Million From Ships Transiting Strait Of Hormuz Under New Ceasefire Framework

Iran is set to charge vessels up to $2 million for passing through the Strait of Hormuz under a new ceasefire arrangement with the United States, according to reports by Reuters and AP.

The move would introduce a “controlled transit” system, where ship movements are coordinated with Iranian armed forces.

A draft bill to formalise the charges has already been approved by Iran’s parliament. Officials said the money collected from ships would be used to rebuild the country after damage caused by recent US and Israeli strikes.

The development comes after US President Donald Trump announced a two-week pause on military action against Iran. In a post, he said the decision depends on Iran agreeing to the “complete, immediate, and safe opening” of the Strait of Hormuz. He described it as a “double-sided ceasefire” after Pakistan Prime Minister Shehbaz Sharif requested more time and urged Iran to reopen the waterway.

The timeline of the ultimatum has stretched over time. It started as a 48-hour warning, was extended to five days, then by another 10 days, and was due to expire earlier this week before the latest two-week pause. This has taken the total timeline to around 408 hours.

The Strait of Hormuz had remained shut for nearly 40 days since the conflict began on February 28, with several attacks reported on ships trying to pass through. This disruption pushed global oil prices higher as the route handles about one-fifth of the world’s oil trade.

Under the new arrangement, both Iran and Oman may collect transit-related fees from vessels. The amount is expected to depend on the type of ship, its cargo, and other conditions.

Iran’s Deputy Foreign Minister Kazem Gharibabadi said the country is working with Oman to prepare rules for how the system will work, adding that the aim is to manage ship movement, not block it.

For decades, the Strait of Hormuz has been a toll-free international waterway. At its narrowest point, it is about 34 kilometres wide and is one of the most important routes for global shipping.

Iran has also shared a 10-point proposal with the United States through Pakistan. The plan includes controlled transit through the strait, an end to the war involving Iran and its allies, and the withdrawal of US forces from regional bases. It also calls for lifting all sanctions on Iran, releasing blocked Iranian assets, and full compensation for damages.

Iran’s Supreme National Security Council said turning these points into an agreement would make them binding under international law.

However, officials also made it clear that talks do not mean the war has ended. They said any final agreement would depend on the details being accepted during negotiations.

There are also legal questions around the plan. Under the United Nations Convention on the Law of the Sea, countries bordering a strait are not allowed to charge ships simply for passing through. They can only charge for specific services like pilotage or towing, and these charges must apply equally to all vessels.

Some Gulf countries, including the United Arab Emirates and Qatar, have opposed the idea. They have called for free and open navigation through the strait and said financial measures should not be introduced at this stage.

References: News18, businesstoday

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