Iran Proposes Hormuz Strait Controls, Fees; Would Bar Israeli Ships and Demand Reparations

by Hwang Jin Hyun Posted : May 3, 2026, 17:42Updated : May 3, 2026, 17:42
Photo: Reuters/Yonhap
[Photo: Reuters/Yonhap]

Iran is moving to place the Strait of Hormuz effectively under its control and impose transit fees.

Iran International, a U.K.-based opposition outlet, reported that Ali Nikzad, the first deputy speaker of Iran’s parliament, said during a visit to Bandar Abbas that a 12-point plan on Hormuz controls and transit rules would ban Israeli vessels from passing through the strait under any circumstances.

Nikzad added that ships belonging to “hostile” countries would not be allowed to transit unless they first pay compensation for war-related damage.

He did not name specific countries. Iran International said the measure is being interpreted as aimed at the United States and some Middle Eastern Arab allies, which Iran has previously described as “hostile countries.”

The plan would also restrict passage for ships from nonhostile countries. Under the proposal, all vessels would need prior Iranian permission before transiting the strait, and could be required to pay a fee.

Mohammadreza Rezaei, chair of parliament’s construction committee, said Iran plans to use 30% of the fee revenue to expand military infrastructure and the remaining 70% for economic development and welfare. “Managing the Strait of Hormuz is more important than obtaining nuclear weapons,” he said.

Since a Middle East war began after the United States and Israel struck Iran on Feb. 28, the strait has remained effectively blocked, according to the report. The waterway is a key maritime route through which about 20% of global oil and gas supplies pass.

Iran is seeking to use the fee system to offset some of its war-related economic losses, but the United States has strongly objected. Washington has warned that companies or countries that pay Iran’s transit fees could face sanctions.



* This article has been translated by AI.