Iran Threatens Strait of Hormuz Tariffs as Oil Transit Drops 19.5%

Iran's parliament committee member Rezaei said Tehran fully controls the Strait of Hormuz and will raise tariffs or seize assets of hostile nations transiting the waterway carrying a fifth of global oil.

"Just as Trump correctly wrote the name of the eternal Persian Gulf, his delusion regarding the Strait of Hormuz will soon either be corrected, or we will correct this deluded man's delusions for him," Kazem Gharibabadi, Iran's deputy foreign minister, said on X.

The threat comes as vessel transit through the strait fell 19.5 percent to 95 confirmed crossings last week, including just three on Sunday, according to shipping data platform Kpler. A projectile hit a ship sailing out of the waterway Tuesday, causing a crew casualty, the British military's UK Maritime Trade Operations center said. President Donald Trump has threatened to bomb Oman over its deal with Iran to manage ship traffic and floated declaring the strait a U.S. territory.

The strait carried a fifth of the world's traded oil and gas before the war, and any actual implementation of tariffs or asset seizures could spike crude prices, raise global shipping costs and stoke inflation. The 60-day negotiating period that Trump signed at Versailles in June expired Monday with no clear end to the war in sight.

Iran's National Security and Foreign Policy Committee member said the strait's management, supervision and inspection falls entirely under the Armed Forces General Staff, which sets toll and service fee standards for transiting vessels. The committee also bans hostile, spy or ships threatening national security from entering the waterway.

The escalation follows months of Iranian threats that effectively closed the strait after Israel and the U.S. started the war nearly six months ago. An Iranian official said Tuesday the waterway will remain closed until the U.S. meets Tehran's conditions, which include ending a U.S. blockade on Iranian shipping, releasing frozen assets, lifting oil sanctions and ending threats and military operations on all fronts.

Trump has insisted the strait remains "open and operating" and said a U.S. blockade of Iranian shipping remains "in full force and effect," asserting all water mines have been removed. The White House declined to comment further about Oman.

The U.S. believes Oman has not been tough enough in its negotiations with Iran and is unhappy with Oman's agreement to collect voluntary fees from vessels, even if the charges relate to security and maritime environmental protection, two regional officials said Tuesday.

Oil Risk Premium Builds as Talks Stall

The last time Iran threatened to close the strait, at the war's onset nearly six months ago, tanker traffic ground to a halt and oil prices jumped as the market priced in supply disruption. Now, with the 60-day deadline passed and both sides dug in, the risk premium in crude markets is building again. Acceding to Iran's demands would give Tehran control over a critical international waterway and amount to admitting defeat; escalating the deeply unpopular war would draw down U.S. supplies of advanced missile interceptors, jolt the world economy and drive up gas prices ahead of U.S. congressional elections.

The standoff leaves Washington with no good options. Talks, such as they are, have focused on reopening the strait and lifting the U.S. blockade, both of which were supposed to have happened under the interim deal signed at Versailles. There has been no sign of compromise on the strait, or that detailed nuclear talks have even begun. Both sides have dug in, hoping the other will blink first. For energy markets, the stakes are direct: any disruption to tanker traffic through the strait would hit roughly a fifth of global oil supply, pushing crude prices higher and squeezing shipping companies that depend on the route.

This article is for informational purposes only and does not constitute investment advice.