Iran to Charge Fees in Strait of Hormuz, Hints at Exemptions for 'Friendly' India

Tehran: The US and Iran are less tense now but they're still talking tough. Iran just said it will charge fees to ships passing through the Strait of Hormuz. The whole world is nervous as oil prices could go up with this decision. Everyone is asking that will India also have to pay? But Iran gave an answer. It said that friend countries might get special treatment. That's sounds good for India.

What did Iran's ambassador say?

The Iranian ambassador to China spoke at a peace forum in Beijing. His name is Abdolreza Rahmani Fazli. He said Iran will charge service fees. The strait is in Iranian territorial waters. So they have the right to collect fees. But he said don't call it a toll. It's a service fee. And friend countries will get special treatment.

Who are the friend countries?

Iran didn't say which countries qualify but the ambassador made it clear. Countries that stood by Iran during hard times get special deals. And that also hints at India. However, during the US-Iran war, ships couldn't pass through the strait easily. Iran blocked many ships but Indian ships got through. Iran let them pass and that was special treatment.

What did Iran's ambassador to India say?

In April, he said Indian ships don't pay any tolls to Iran. His name is Mohammad Fathali. He said, "Ask the Indian government. Have we charged them anything? In this difficult time, we have good relations. We believe Iran and India have the same interests and destiny." He said that India has been a sensitive and trustworthy partner, so India gets favored status.

Will India pay the fee?

Iran treats India as a friend as Fathali made that clear. He said India proved itself trustworthy during tough times. That's why many think India won't have to pay. New Delhi might be exempt just like other friend countries.

Iran hasn't explained the details yet. They didn't say which countries pay, and which don't. They also didn't say how much the fee is, and how they'll collect it. All they said is service fees will be charged, and friends will be getting special treatment.

Why does India care?

India needs oil and a lot of it passes through the strait. If India has to pay fees, oil will costs more. That makes everything more expensive because of supply chain. If India is exempt, it saves money. That's why India watches this closely. Iran hasn't said much about same as they're still working out the details. But the message is clear that something is coming and friendly countries will be treated differently.