Iran says Strait of Hormuz to reopen with new transit fees

Iran is set to open the Strait of Hormuz for ships but under new conditions, including a transit fee, as quoted by Iran’s ambassador to Moscow.

As reported by Reuters, the Ambassador Kazem Jalali unveiled the upcoming proposed plan while interviewing with the Russia newspaper Izvestia published on Monday.

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According to Kazem, “Of course, this strait will ⁠be open, but with new conditions to be determined by ​the Iranian and Omani authorities.”

"We understand that Iran and Oman provide certain services related to this strait. And fees will be charged for those services," ​he said without giving further details regarding the new rules.

The Strait of Hormuz has been facing disruptions and persistent blockade in the wake of the US-Israel and Iran conflict. Owing to closure of Hormuz, the global energy markets have been at edge driven by the crunch in oil and gas supplies and soaring energy prices. The strategic waterway is responsible for shipping one-fifth of the world's oil.

As per Iranian officials, the permanent peace deal should include a clause related to the transit fee plan, allowing the country to demand for the ships using the strait. The criteria of feel would depend on the type of ship, its cargo and geopolitical conditions.

However, such a proposition has been severely opposed by the Trump administration. In late May, the US issued a warning to Oman not to get involved in any talks surrounding the imposition of toll. Despite repeated warning, Iran and Oman engaged in talks.

US President Donald Trump opposed the idea of fee, citing, “we don’t want tolls. It’s international. It’s an international waterway.”

US Secretary of State Marco Rubio also resisted the move of collecting toll, stating, “It can’t happen. It would be unacceptable. It would make a diplomatic deal unfeasible if they were to continue to pursue that.”

On Monday, June 8, Israel launched airstrikes against military targets in western and central Iran. The action followed a barrage of missiles fired by Iran at Israel the previous day.

The escalation occurred despite efforts by the US President Donald Trump to prevent a cycle of retaliation.