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Iran’s Ambitious Plan: Transforming the Strategic Strait of Hormuz into a Revenue-Generating Toll Gateway

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Iran is considering turning the Strait of Hormuz into the world’s most expensive toll booth, charging vessels an immense sum for safe passage.
Supreme Leader Mojtaba Khamenei is pushing for ways to monetise its control of the narrow body of water, through which 20 per cent of the world’s oil passes.

An Iranian news outlet, Daily Javan, has suggested that imposing fees on vessels for safe passage could help offset Iran’s war-related losses.

Unable to pass through the Strait of Hormuz, ships are anchored in Oman.
Unable to pass through the Strait of Hormuz, ships are anchored in Oman. (Getty)

The article proposed that oil tankers could face a $50 fee per barrel, representing a 50% increase, to help cover the country’s war damages.

But ships from Israel and the US would not be allowed in through strait at all.

While this move might not significantly impact the United States, given its substantial domestic oil production, it could severely affect Israel’s refined petroleum supplies.

Reports indicate that Iran is already charging shipping companies approximately $2.8 million to ensure their vessels pass through the strait safely.

Currently, Iran’s parliament is deliberating on legislation to formalize these safety passage taxes into law.

“Collecting US$2 million as transit fees from some vessels crossing the strait reflects Iran’s strength,” top politician Alaeddin Boroujerdi said.

President Masoud Pezeshkian’s rhetoric implied many vessels were free to travel through.

“The Strait of Hormuz is open to all except those who violate our soil,” he said. 

“We firmly confront delirious threats on the battlefield.”

Already four vessels from India have been able to go through the strait. It is not known whether they paid Iran in order to do so.

At its narrowest, the Strait of Hormuz is just 34km wide.

An oil tanker going through the Strait of Hormuz.
An oil tanker going through the Strait of Hormuz. (Adobe Stock)

Missile launch sites dot the Iranian coastline of the Strait, including underground bases.

They also have small vessels capable of laying mines stealthily.

An Iranian drone or missile strike on a cargo vessel trying to get through the strait could result in a fiery death followed by a watery grave.

Even a military escort of cargo tankers would provide limited protection from an Iranian strike.

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