Iran's parliament approves Hormuz Strait toll bill, setting fees up to $2 million per ship

Iran's Majlis has passed a bill that would formalize tolls on vessels transiting the Strait of Hormuz, marking what the shipping industry says is the first modern instance of a country unilaterally charging for passage through an international strait. Under the legislation, fees of up to $2 million per vessel must be paid in Iranian rials, a requirement expected to boost demand for the currency. The measure codifies an improvised regime already in effect since early March, which industry participants have dubbed the "Tehran Toll Booth" and which has reportedly been collecting payments from select ships. About 20% of global oil and gas supply moves through the strait, where nearly 2,000 ships are still stranded. Oil is trading above $115 a barrel. Iran has also demanded international recognition of its sovereignty over the strait as one of five conditions for ending the war. The Gulf Cooperation Council has condemned the tolls as "an aggression and a violation of UNCLOS." India, Saudi Arabia and the UAE have rejected Iran's legal basis for the charges.