Amid military clashes with the US, Iran brought a new bill to parliament regulating the management of the strategic Strait of Hormuz. The parliament, dominated by hardline lawmakers, opened debate on Monday night on the text titled 'Strategic Action for the Security and Sustainable Progress of the Strait of Hormuz and the Persian Gulf.'
Parliamentary National Security Committee Chairman Ebrahim Azizi said in a social media statement, 'We are determined to defend our red lines on the management of the Strait of Hormuz. This is the first step; further steps will follow.'
US and Iran Exchange Statements
US President Donald Trump said in a speech on Monday that Washington plans to charge ships 20 percent of their cargo value as a transit fee, as the 'new guardian' of the strait.
Iranian Foreign Minister Abbas Araghchi, however, welcomed Trump's acknowledgment that a fee should be charged, and stated that Iran, as the 'eternal' guardian of the strait, would set a lower and 'fair' price.
Iran also signaled that if tensions escalate further, it could close another key waterway, the Bab el-Mandeb Strait, through the Houthis in Yemen.
Draft Details of the Bill
The official text of the bill has not yet been made public. However, a draft published in state media in May offers clues about the plan's content. According to the draft, ships flying US or Israeli flags, as well as military, intelligence, or 'hostile' vessels from countries acting against Iran's 'axis of resistance,' will not be allowed passage. All ships will be required to obtain permission, declare their cargo, and pay a fee. Only the name 'Persian Gulf' will be used for the region. Ships violating the rules will be denied passage and up to 20 percent of their cargo value may be confiscated.
Economic Impact of the Clashes and Regional Initiatives
The US military has carried out hundreds of airstrikes targeting at least 11 provinces in Iran over the past week. According to Iranian officials, more than 20 people were killed in these strikes. The most intense attacks hit the port city of Bandar Abbas, overlooking the Strait of Hormuz, and its surroundings. Iran's Revolutionary Guards and army responded with missile attacks on US targets in Bahrain, Kuwait, and Jordan.
The expectation of prolonged clashes has also negatively impacted Iran's economy. The Iranian rial fell to 1.85 million against the dollar on the open market on Tuesday, approaching the historic low of 1.9 million seen in May. The main index of the Tehran Stock Exchange lost another 42,000 points, dropping below 5 million points.
Amid mediation efforts by Oman, Qatar, and Pakistan, Omani Foreign Minister Badr Albusaidi announced that 'complex negotiations have begun for a lasting framework to guarantee freedom of passage.'
