Iran's national-security commission in parliament has moved forward with new legislation that would fundamentally change how the Strait of Hormuz operates. The proposed laws would require all passing vessels to pay a transit fee. They would also ban ships from countries Iran classifies as unfriendly from entering the Persian Gulf altogether.
According to the Wall Street Journal, Iranian officials compare their proposed toll system to the Suez Canal, which generates billions of dollars annually for Egypt, "Hvylya" reports. But the comparison breaks down under international law: the Suez Canal is a man-made waterway running through Egyptian sovereign territory, while the Strait of Hormuz is a natural passage with Iran on one shore and Oman's Musandam exclave on the other.
The commission's chief, Ebrahim Azizi, has framed the new legislation in openly triumphalist terms. "Trump has finally achieved his dream of regime change - but in the region's maritime regime," Azizi said. He added that the strait would reopen, but only for those who comply with Iran's new laws.
James D. Fry, an expert on international maritime law at the University of Hong Kong, dismissed Iran's legal position. There is "no conceivable legal argument" for why Iran would be able to regulate commercial shipping on Oman's side of the maritime boundary, Fry said.
The legislation also faces a practical obstacle: Iran's Islamic Revolutionary Guard Corps is designated a terrorist organization by the U.S. and EU member states. Any financial transactions with Iran, including toll payments, would fall under U.S. sanctions - creating an impossible situation for shipping companies. Jason Chuah, a professor of maritime law at the City University of London, described the arrangement as a "loyalty test" that no commercial entity can hope to pass. Shipowners would risk their vessels if they refuse to pay Iran, but risk their standing in the global financial system if they do.
Earlier, "Hvylya" reported on how a retired four-star general warned that one tanker hit per week could shut the strait down entirely.