As the United States (US) and Iran announced a two-week ceasefire in the Middle East, the focus has once again shifted to the contentious Strait of Hormuz, which is one of the most critical transit points in the world, with Supreme Leader Mojtaba Khamenei signalling that the Islamic Republic will change its strategic approach toward the chokepoint.
"Iran will take management of the Strait of Hormuz into a new phase," Mojtaba, who became the Supreme Leader after his father Ayatollah Ali Khamenei was killed in a joint US-Iran strike on February 28, said in a message on state TV.
Hormuz's importance to global supply lines
Strait of Hormuz is a narrow transit point, which is located between the Persian Gulf and the Gulf of Oman. The strait is approximately 100 miles or 161 kilometres long, and around 21 miles wide at its narrowest point. Around 20 to 30 per cent of global crude supplies pass through this point, with all of the Organization of the Petroleum Exporting Countries (OPEC) nations - Saudi Arabia, Iraq, UAE, Kuwait, Kazakhstan, Algeria and Oman - depending heavily on it.
With the two sides announcing a two-week ceasefire, the oil rates had nosedived and global stocks had soared, which shows the importance of the Hormuz. But despite a ceasefire, ships are still hesitant in crossing the strait and are sceptical of the agreement. As per the MarineTraffic data, more than 400 tankers, 34 LPG tankers and 19 LNG vessels are still in the region, and it is worth mentioning that around 100 ships used to regularly cross the Hormuz before the conflict started in February end.
Concerns are also over ships showing reluctance in entering the Hormuz again for a refuel. Many vessels and tankers don't want to take the risk of entering Hormuz again, as they fear that the ceasefire agreement may not be completely implemented and is only "temporary". "You also must have a willingness of empty tankers to come back in through the strait, refill and then go back out... That whole process takes several days," CNN quoted an oil industry source as saying.
Iran's push to charge ships
Iran has on multiple occasions signalled about charging vessels that pass through the Hormuz. This week, reports also went viral which claimed that Iranian authorities would charge USD 2 million on each ship that would pass through Hormuz. As per a report by the Associated Press (AP), a draft bill was also approved by Iran's Parliament on April 7 to formalise the toll, and with Mojtaba's recent statement, it seems the Iranian side is seriously mulling implementing the toll.
However, this move has left the Gulf state concerned who heavily depend on Hormuz. Both the United Arab Emirates (UAE) and Qatar have pushed for keeping the Hormuz open. It is also being pointed that as per the UNCLOS maritime convention governing international sea law, countries that border straits cannot unilaterally imposed tolls on ships passing through them; although limited fees can be imposed for specific services.
Trump's warning to Iran
Mojtaba's statement came just hours before President Donald Trump issued a fresh threat to Iran and warned the Middle East nation against imposing fees on tankers that passes through the Hormuz. In separate posts on his Truth Social account, the 79-year-old American leader said Iran is breaching the terms of the ceasefire agreement and doing a "very poor job" by allowing oil through the strait.
"There are reports that Iran is charging fees to tankers going through the Hormuz Strait. They better not be and, if they are, they better stop now!" he said. "Iran is doing a very poor job, dishonorable some would say, of allowing Oil to go through the Strait of Hormuz. That is not the agreement we have!"
Although, it should be noted that the US president had himself floated an idea of imposing tolls on ships, telling the ABC News that his country could be involved in securing the Hormuz in a "joint venture" with the Middle East nation.
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