"Iran is now planning to charge ships passing through the Strait of Hormuz. If we split [income from levies] three ways-Indonesia, Malaysia, and Singapore-it could be quite substantial. Indonesia stands to benefit most, given that its stretch is the largest and longest."
"Purabaya quickly walked back his suggestion, acknowledging that a decision would require buy-in from both Singapore and Malaysia, which also sit alongside the strait."
"Iran is now openly charging tolls for ships to traverse the Strait of Hormuz, often paid in Chinese yuan or cryptocurrencies, and is planning to set up a regime to formalize this control even after the war ends."
"U.S. President Donald Trump has at times signaled his comfort with Iran charging tolls for ships to pass through the Strait, suggesting that the U.S. and Iran could jointly manage the waterway as part of a settlement to end the war."
Iran's decision to charge fees for ships in the Strait of Hormuz has prompted Indonesia to consider imposing levies on vessels in the Strait of Malacca. This strait is crucial for global trade, with 30% of it passing through. Indonesia's finance minister suggested that revenue could be shared among Indonesia, Malaysia, and Singapore. However, he acknowledged that any decision would require agreement from both Malaysia and Singapore. The conversation around navigation fees has shifted significantly since the onset of the war in Iran.
Read at Fortune
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