Iran’s National Security and Foreign Policy Committee approved a bill on March 31 to impose formal transit fees on commercial ships using the Strait of Hormuz, although the legislation still requires full parliamentary approval. Authorities have reportedly demanded up to $2 million per vessel on an ad hoc basis since early March, describing the payments as service fees rather than tolls. Roughly 20% of the world’s seaborne crude oil and natural gas normally passes through the strait, but traffic fell approximately 95% after conflict began on February 28, 2026. Payments collected since early March were reportedly made in Chinese yuan. Iran established the Persian Gulf Strait Authority in May 2026 to manage vessel approvals and fees, then introduced a temporary 60-day waiver in June that expired around mid-August. Parliament also reviewed proposals in August to ban vessels linked to the US, Israel and other adversaries and impose fees equal to 5%-7% of cargo value. Such charges would far exceed typical Suez Canal fees and could increase oil prices, shipping costs, insurance premiums and delivery times, while threatening access for tankers with Western financial, insurance or flag-state connections.