Iran to introduce new navigation law for Strait of Hormuz

Iran’s parliament is set to adopt a new law regulating shipping in the Strait of Hormuz once it reconvenes, according to a senior lawmaker, in a move that could have significant implications for global maritime traffic and energy markets.

Alaeddin Boroujerdi, a member of the Majlis committee on national security and foreign policy, said the proposed legislation is based on the “Hormuz Strait Security Plan,” which has been under review for its legal and international dimensions.

Speaking to the ILNA news agency, Boroujerdi described Iran’s control over the strategic waterway as “absolute sovereignty” exercised by the state and its armed forces.

“We have held several meetings to examine the legal and international aspects of the ‘Hormuz Strait Security Plan’. This plan will be adopted as a binding law immediately after parliament reconvenes and will be submitted to the government for implementation,” Boroujerdi said.

He noted that every vessel passing through the strait will be required to use Iranian insurance platforms and pay transit service fees as well as environmental charges.

To implement this policy, the Central Bank of Iran has opened four special accounts denominated in rials, yuan, US dollars, and euros, the MP added. Fees collected by the IRGC Navy will be deposited into these accounts. Boroujerdi also stated that once the infrastructure for a digital currency is fully established, payment of duties in rials will become mandatory. “We will witness an unprecedented strengthening of the national currency in international transactions,” the lawmaker suggested.