Iran formalizes its chokehold over the Strait of Hormuz

Key Points:

• Iran is establishing control over the Strait of Hormuz by requiring ships to enter its waters for vetting by the Islamic Revolutionary Guards Corps (IRGC), effectively creating a "toll booth" system where passage fees, paid in Chinese yuan, have been reported.
• Since the Iran war began, traffic through the strait has dropped by 90%, causing global oil prices to surge and creating shortages in Asian countries dependent on Persian Gulf oil shipments.
• Many vessels avoid standard shipping lanes and switch off tracking systems to evade attacks, with at least 18 ships hit and seven crew members killed recently, highlighting security risks in the area.
• Iran's parliament is reportedly working on legislation to formalize control and fees for passage through the strait, a move condemned by the International Maritime Organization and Gulf Cooperation Council as violations of international law.
• UAE oil executive Sultan al-Jaber described Iran's chokehold on the strait as "economic terrorism," emphasizing the global economic impact and calling for coordinated international action to ensure freedom of navigation.