Iran seeks "insurance mechanism" to reduce risks for ships transiting through Hormuz
Tehran, June 27
Senior Iranian leader and former commander in Iran's Islamic Revolutionary Guard Corps Major General Mohsen Rezaei has called for the establishment of an "insurance mechanism" for ships transiting the Strait of Hormuz, saying vessels involved in incidents should be covered to reduce risks while arguing that the associated costs should be borne by oil transporters rather than the Iranian people.
Speaking in an interview with US-based NewsNation on Thursday, Rezaei, who also serves as a senior adviser to Iran's Supreme Leader, Mojtaba Khamenei, outlined Tehran's position on the future of the strategic waterway amid ongoing discussions over regional security.
Responding to a question on how the Iranian leadership views the future of the Strait of Hormuz as negotiations progress with the US, Rezaei said there were ongoing discussions over fees and service costs related to the passage.
"Regarding fees, there is a cost to mention in this matter. There is a tolls discussion and a fees discussion. There is a discussion about service costs in the Strait of Hormuz," he said.
Rezaei said Iran wants to ensure security and environmental protection in the strategic maritime corridor while proposing an insurance framework for commercial vessels.
"Yes, we want to maintain the security of the Strait of Hormuz. We want to protect the environment of the Strait of Hormuz. We must establish an insurance mechanism so that ships involved in incidents or encountering problems are covered to reduce their risk," he added.
He further stated that the financial burden of such measures should not fall on Iran.
"When we provide all of this, these costs cannot come out of the pockets of the Iranian people. These costs must be collected from those who are transporting oil through the Strait of Hormuz," Rezaei said.
The issue of levying fees on vessels transiting the Strait of Hormuz has emerged as a key point of contention between Tehran and Washington as part of their talks.
Iran has argued that ships using the strategic waterway should contribute towards security and related services, while the United States has repeatedly rejected any proposal for tolls or maritime transit fees, maintaining freedom of navigation through the international shipping lane.
US President Donald Trump has reportedly slammed the idea by Tehran, saying that it would be "unacceptable" to him if the Iran deal included any kind of fees on shipping or maritime activities in the Strait of Hormuz.
Trump, while talking to reporters during his meeting with the NATO Secretary General, Mark Rutte, on Wednesday, said, "It would be unacceptable to me because we have numerous straits that, if you did that for them, you'd have to do for other people. You have other straits; well, I wouldn't allow it there either. Yeah, it would be a game changer."
Trump earlier also claimed that Tehran has given formal assurances to Washington on not imposing transit charges on vessels navigating the vital Strait.
The Strait of Hormuz, a global maritime chokepoint that facilitates nearly 20 per cent of the world's seaborne oil trade, has been a source of volatility following reports of potential Iranian regulation of traffic.
Seeking to calm industry fears, Trump took to Truth Social to relay the commitment from Tehran.
"Iran has informed us that there will be 'NO TOLLS, NO INSURANCE COSTS, & NO OTHER CHARGES OF ANY KIND' on commercial shipping," the post read.
He underscored the gravity of the pledge with a clear diplomatic ultimatum: "If this is false information, negotiations would end, immediately!"
— ANI
Reader Comments
This is just Iran trying to squeeze more money from global trade. Strait of Hormuz is international waters, not some private property of Tehran. India should support US position on freedom of navigation. We can't have any nation unilaterally deciding to tax international shipping lanes.
The insurance mechanism part is actually smart thinking from Iran. They want to create a framework where ships that cause environmental damage or security incidents bear the costs. Look at what happened during the Iran-Iraq war when tankers were attacked. But implementing it unilaterally without international consensus is problematic.
Classic geopolitical maneuvering. Iran knows 20% of global oil passes through Hormuz, so they want leverage. But India must tread carefully - we have good relations with Iran (Chabahar, connectivity to Central Asia) but also depend on Gulf oil. This could become another flashpoint like China's claims in South China Sea. Diplomacy needed.
Trump's reaction is typical - ultimatums and threats. But this issue won't go away easily. Iran faces severe economic pressure from sanctions, and they see this as a revenue opportunity. The question is: who pays? If oil companies, it hits consumers globally, including India. We need more strategic petroleum reserves.
The irony is rich - Iran wants to charge tolls for security they're often accused of undermining! Remember the tanker seizures and mine attacks in 2019? If they genuinely want to protect the strait, work through international maritime bodies, not impose unilateral fees. This looks like another bargaining chip in nuclear talks.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.