Iran parliament moves to formalize control over Strait
Iran’s parliament is drafting a bill to impose a toll on ships passing through the Strait of Hormuz. The move comes as tensions in the Middle East continue to disrupt global energy flows. Bloomberg, citing Iran’s semi-official Fars News Agency, reported that Iran wants to charge vessels for security and oversight while crossing the narrow corridor.
Draft law may take final shape next week
Iran may finalize the draft law as early as next week. A lawmaker told Fars that Iran wants to formally recognize its sovereignty and control over the Strait through legal provisions. The proposal also aims to create a new revenue source by collecting tolls from ships using the route.
Strait of Hormuz remains critical for world oil supply
The Strait of Hormuz serves as one of the world’s most vital shipping routes. Nearly one-fifth of global oil supply passes through it. The conflict has now entered its fourth week and has reduced shipping activity sharply. Only a limited number of ships, mainly linked to Iran and China, are using the route.
Oil prices rise as shipping disruptions tighten supply
Restricted movement has forced Gulf producers to slow oil output. Damage to refineries has also added pressure on supply. Brent crude crossed $114 per barrel earlier this week. Analysts fear prices could rise further if tensions escalate and shipping faces more disruption.US policymakers are examining the economic risks of oil reaching $200 per barrel.
