The Strait of Hormuz has remained closed to naval traffic, harming the global economy beyond the Gulf. Iran’s IRGC controls access to the waterway, while a US blockade on Iranian ports has not reopened it. Before the war, 120 to 140 ships passed daily, including about half oil tankers moving roughly 20 million barrels of oil. Now only a few vessels with negotiated permission can transit. Iran coordinated 26 vessel transits in 24 hours and formed the Persian Gulf Strait Authority to provide real-time operational updates. Since a temporary US-Iran ceasefire in April, Iran has formalized a mechanism to charge transit fees, reportedly up to $2 million per ship, despite claims of illegality. Paying may still be cheaper than the daily costs of closure.
"Before the war began, between 120 and 140 ships travelled through the strait each day, about half of them oil tankers carrying some 20 million barrels of oil between them. Now, only a few vessels whose owners have negotiated with the IRGC are permitted to pass. On Wednesday, Iran said it coordinated the transit of 26 vessels through the Strait of Hormuz in 24 hours, two days after announcing the formation of the Persian Gulf Strait Authority (PGSA), a new body to provide real-time updates on operations in the strait."
"Since the announcement of a temporary ceasefire between the US and Iran in April, Iran has been working on formalising a mechanism to charge a transit fee from ships crossing the critical chokepoint, through which 20 percent of the world's oil and liquefied natural gas (LNG) are shipped during peacetime. Tehran has reportedly already charged fees as high as $2m per ship for transit since the war started. Even though countries opposing Tehran say this is illegal, it may still be less expensive than the overall cost of the closure of the strait each day."
"Economics of the Strait of Hormuz closure are skewed towards Iran. Then why won't the ships just pay Tehran and sail away? Eleven weeks after the start of the Iran war, the Strait of Hormuz has remained closed to naval traffic, bleeding the global economy far beyond the Gulf. Iran's Islamic Revolutionary Guard Corps (IRGC) maintains an iron grip over the narrow, strategic waterway, while a corresponding United States naval blockade on Iranian ports has failed to reopen it."
Read at www.aljazeera.com
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