Iran levies $2 million 'transit fees' to let tankers through Strait of Hormuz: Report

An Iranian lawmaker has reportedly said that the fees charged from some vessels crossing the Strait reflects Iran’s strength.

Iran is reportedly monetising the Strait of Hormuz to put pressure on the Gulf Cooperation Council (GCC) nations and ultimately the United States in the ongoing war.

Citing Iranian lawmaker Alaeddin Boroujerdi, Fox News reported that Tehran is charging a whopping $2 million 'transit fees' from some tankers to pass through the key shipping route.

"Collecting $2 million as transit fees from some vessels crossing the strait reflects Iran’s strength," Boroujerdi reportedly told state broadcaster Islamic Republic of Iran Broadcasting (IRIB) on Sunday.

This comes as US President Donald Trump gave Iran a 48-hour ultimatum on Sunday to open the strait "fully" and "without threat" or suffer attacks on "their various power plants, starting with the biggest one first."

Iran has been using the Strait of Hormuz as leverage in its war against the US and Israel, causing energy crisis around the world. Estimates say that about 20 million barrels of oil and roughly 20 per cent of global liquefied natural gas pass through this strait every day. This number has drastically reduced since Tehran has been attacking ships linked to the US, Israel and even their allies.

But it's not just about oil. Since the GCC countries do not rely on domestic agriculture, they import most of their food through the strait. According to CNN, nations like Saudi Arabia imports 80 per cent, the UAE around 90 per cent and Qatar about 98 per cent of their food through shipments passing this waterway.

In response to Trump's ultimatum, the Iran Revolutionary Guards Corp (IRGC) have warned to completely close the strait if the US attacks Tehran's energy facilities.