Iran is drafting legislation to impose tolls on ships passing through the Strait of Hormuz.

According to the semi-official Iranian news agency Fars, the Iranian parliament is drafting a bill to impose fees on vessels seeking safe passage through the Strait of Hormuz.

Fars quoted an anonymous parliament member stating that the plan will be finalized next week and will legally affirm Iran’s jurisdiction over the Strait of Hormuz. This critical waterway connects major oil and gas producing countries in the Persian Gulf region with the rest of the world.

Since the U.S. and Israel launched strikes against Iran nearly a month ago, this narrow waterway has been almost blockaded, becoming the focal point of the current conflict. As Iran tightens its controls, only a few vessels have been able to pass in recent weeks, most of which are related to Iran or China, with a few others receiving approval from Iran’s Islamic Revolutionary Guard Corps for safe passage.

This legislation from Tehran will formally legalize a unilateral arrangement that has been widely reported in the shipping industry. Previously, Iran had informally demanded passage fees of up to $2 million from passing vessels. Relevant parties have requested crew members to provide personnel, cargo, and navigation information through intermediaries, and in some cases, fees have also been demanded, although these actions have not formed a systematic approach.

Imposing passage fees and promising safe passage presents a complex dilemma for the shipping industry. Companies are eager to rescue crew members and cargo trapped in the Persian Gulf, yet they are reluctant to face sanctions and security risks as a result. According to international law, freedom of navigation in such critical waterways is typically guaranteed.

Amanda Bjorn, claims manager at marine insurance brokerage Cambiaso Risso Asia, stated during a maritime conference in Singapore, “Ultimately, the question is whether you are willing to trust Iran in this matter.”

“This will hinder global trade, and for the past roughly one hundred years, we have enjoyed freedom of navigation.”

The obstruction of shipping in the Strait of Hormuz has led to forced shutdowns of oil production in the Persian Gulf region, and local refineries have also been damaged in the conflict. As a result, oil prices have surged, with the global benchmark Brent crude briefly surpassing $114 per barrel earlier this week.