The Iranian Parliament’s National Security and Foreign Policy Committee has advanced plans to charge fees to vessels crossing the Strait of Hormuz, the panel’s spokesperson announced on Sunday.
Hassan Ghashghavi confirmed, according to Iranian state media reports, that Article 3 of the proposed Strategic Action Plan for the Security and Sustainable Development of the Strait of Hormuz and the Persian Gulf would allow Iran to charge fees for services it alleges it provides.
Under Articles 38 and 44 of the United Nations Convention on the Law of the Sea (UNCLOS), Iran cannot suspend, impede, or charge tolls for vessels passing through the Strait of Hormuz. However, the convention permits countries to charge fees for services provided.
“Under this article, fees will be charged for services we provide, including navigation, environmental, insurance, and safety services; refueling under special circumstances and other services,” Ghashghavi noted, according to the Islamic Republic News Agency (IRNA).
“These fees will be collected from ships belonging to countries authorized to pass through the Strait of Hormuz, in rials or any other currency designated by the Islamic Republic of Iran,” he added.
Article 3 had been deferred during the committee’s last meeting, Ghashghavi said.
Iran facing mounting financial pressure
The timing of the advancement is notable, security analyst Roger Macmillan explained to The Jerusalem Post on Monday.
Though it may be framed as a tit-for-tat move by the Islamic regime in response to US President Donald Trump’s threat of an “Economic D-Day” for countries aiding the regime, Macmillan suggested that it was likely a greater sign of Tehran’s dire financial state.
“This is a regime that is now feeling the squeeze of the US economic sanctions. They are clearly biting, and the regime needs hard cash. The rial is worthless, and the desperation is kicking in,” Macmillan said.
His comments came as Iran’s currency hit a record low, dropping to 2.02 million rials to the US dollar on informal currency markets, according to the Associated Press. Iran’s Central Bank, however, maintains that the rate stands at 1.5m. rial to the dollar.
Regional countries unlikely to accept additional fees
Macmillan, adding to his interpretation, noted that regional countries have already made clear they don’t want to pay additional fees and that such a move would only further “entrench” Iran in isolation.
Additionally, he said, few countries would be willing to draw Washington’s attention and face the consequences of breaking American sanctions.