The risks of Iran’s threat to control the Strait of Hormuz
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Vessels in the Strait of Hormuz on May 22. Iranian threats to formalise its control over the strait underline the war’s potential to do lasting damage to the global economy.
PHOTO: REUTERS
Jenny Gross
LONDON – Iran is trying to formalise – and monetise – its control over the Strait of Hormuz, previously a transit point for one-fifth of the world’s oil and gas, by charging a fee for passage.
What Iran is proposing violates the rules on which international shipping is based, which hold that countries cannot charge for safe passage through international waterways, and is unlikely to succeed, analysts say.
