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Iranian state media on Thursday reported that Tehran could attempt to block U.S. and Israeli shipments from transiting the Strait of Hormuz under its joint venture with Oman to reopen the critical waterway to commercial traffic.
Members of Iran’s parliament are reviewing a proposed bill to block “hostile” vessels from moving through the choke point responsible for carrying a fifth of the world’s oil transports per day under normal conditions.
Ships caught violating the policy could face a 20 percent fine if caught by Iranian authorities, per state media.
Each ship approved to transit the strait will face fees for insurance, refueling and or environmental costs, according to Iranian state media.
Although, tolls on international waterways are considered a violation of the principle of freedom of navigation protected under the United Nations Convention on the Law of the Sea.
The U.S. and Israel would likely be excluded from all routes after launching joint strikes on Iran’s nuclear facilities last year and again in March, marking the start of a five-month long war that has expanded across the Middle East.
The Trump administration has considered several off ramps since the start of the war, but all have been unsuccessful as leaders in Tehran and Washington, D.C. accuse one another of violating the agreed upon terms.
Commercial traffic through the Strait of Hormuz has remained a contentious topic, as Iran attempts to exert full control over the global shipping route by mining the waterway to prevent unwelcome transit.
American soldiers and Iranian troops worked to demine the strait in June after the signing of a memorandum of understanding that sparked a 60-day ceasefire. However, fighting resumed less than a month later, re-igniting the battle for dominance over the waterway.
An American naval blockade is currently being imposed in an effort to starve the Iranian regime of oil and trade revenue and exert maximum economic leverage to force a diplomatic resolution and the reopening of the strait free of tolls.
“We control it, but they can always shoot something, they always have something, or drop a mine, and if you have one mine out there you sort of mess things up, because people don’t want to take their billion-dollar boats and accidentally get hit by a mine, but I think we’re doing very well,” Trump told reporters on Thursday, despite Iranian leaders rejecting that narrative.
The Trump administration has maintained that there will be no tolls on the strait.
“Any temporary routes will be without any impediments — meaning no approvals or permissions and no tolls or charges. The Strait of Hormuz is an international waterway and no party controls the lanes or the ability to transit through them,” a U.S. official told NPR on condition of anonymity as they were not approved to speak on the record.
As Iran and Oman near a deal to resume commercial traffic in the strait, economists and world leaders are bracing for a potential period of stability for international oil markets rattled by the oscillating war.
The president said Iran is open to another peace deal and Turkey’s foreign minister on Thursday confirmed an agreement could soon be formed as a result of diplomatic talks.
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