Saudi Arabia, UAE irked by Iran's new move; slam Tehran over new tax

Tehran: Following a recent Memorandum of Understanding (MoU) with the US, Iran has taken a major step that has surprised the world. Iran has announced that it will levy a 'maritime transit fee'—essentially a maritime tax—on vessels passing through the strategically vital Strait of Hormuz.

This tax is set to be implemented within the next two months, following a 60-day negotiation period with the US.

Why is this move significant? 

According to a report by 'The Guardian', this decision comes just after the US lifted its naval blockade against Iran on Thursday. This move has allowed commercial shipping to resume along one of the world's most critical oil transit routes.

Iran has hailed this agreement as a "historic victory" over the US, asserting that the waterway remains under its control. Furthermore, Iran has strongly opposed any naval security mission led by European nations.

Why do Tensions Persist on the Israel-Lebanon Front? 

Despite the US-Iran deal, tensions in the Middle East have not subsided. According to the Israeli newspaper 'Yedioth Ahronoth', Israeli Prime Minister Benjamin Netanyahu has made it clear that Israel will maintain its 'security zone' in southern Lebanon for as long as its security needs dictate. He identified preventing Iran from acquiring nuclear weapons as Israel's top priority.
Meanwhile, Iran argues that the agreement requires respect for Lebanon's territorial integrity, necessitating a complete withdrawal of Israeli troops from southern Lebanon. Iran has placed the responsibility for ensuring this on US President Donald Trump. For his part, Trump wrote on his social media platform, 'Truth Social', that the US expects a "complete ceasefire" across all fronts, including Lebanon, Hezbollah, and Israel. 
Supreme Leader’s approval and the situation on the battlefield
According to reports, Iran's Supreme Leader Ayatollah Mojtaba Khamenei has given his approval to this agreement with Washington. Mojtaba, who assumed office in March following his father's assassination, has not been seen in public since then. Reports indicate he stated that Trump employed every possible tactic out of 'desperation' to seal this deal.
Amidst these diplomatic efforts, violence on the ground has not ceased. Reports of Israeli drone strikes and shelling emerged on Thursday, while Hezbollah claimed responsibility for an attack on the Israeli army in the Kfar Tebnit area.

Why is Israel opposing the US-Iran deal? 

The agreement is facing sharp criticism within Israel. An opinion piece in 'The Times of Israel' stated that the US and Israel have lost this war against Iran due to the 'American President's weakness.'
Countering this criticism, US Vice President JD Vance defended Donald Trump. Vance said, "Donald Trump is the only head of state in the entire world right now who has sympathy for Israel. If I were in the Israeli government's cabinet, I wouldn't be attacking my only remaining powerful ally in the world."

Will technical talks be held in Switzerland? 

The formal signing ceremony between the US and Iran, scheduled to take place in Switzerland, has now been cancelled. However, Trump and Iranian President Masoud Pezeshkian have already signed the documents (MoU) in English and Persian.

The cancellation of the ceremony means that Pakistan's Prime Minister Shehbaz Sharif, a key mediator, will no longer travel to Switzerland for the event. Nevertheless, technical discussions regarding the implementation of the 14-point memorandum, the lifting of sanctions on Iran's oil exports, and the restoration of trade in the Strait of Hormuz will continue at the Qatari-owned Bürgenstock Resort.

Why are Saudi Arabia and UAE Irked by Tax Collection Proposal? 

Saudi Arabia raised strong objections when Iran's chief negotiator, Mohammad Bagher Ghalibaf, spoke of levying taxes in the future under the guise of 'managing' the waterway. Saudi Foreign Minister Prince Faisal bin Farhan Al Saud stated that everything was functioning smoothly prior to the conflict, with ships moving freely without hindrance.

He remarked, "Why is a new system being imposed on us now as a consequence of the war? It is beyond my understanding. We should revert to the previous arrangement."
Meanwhile, the United Arab Emirates (UAE) has also clarified its stance on this new situation. Muad Alwari, the UAE's Director of Policy Planning, noted that the UAE had endured some of Iran's most severe attacks during the conflict, with hotels and civilian properties being targeted.

He emphasized that the war had actually strengthened their defense ties with Israel and that their commitment to the 'Abraham Accords' remained unwavering.

What about Reconstruction Fund and Iran's Struggling Economy? 

Under the agreement, the US has consented to establish a $350 billion reconstruction fund for Iran. Iran is now working to garner regional support for this fund while simultaneously improving relations with its Gulf neighbors. However, Iran's Finance Minister, Seyed Ali Madanizadeh, has warned the country over sanctions on oil exports. 
"The economy will not improve overnight even after the withdrawal. The war has caused massive losses to government revenue and significantly increased the strain on the national budget; therefore, it will take time for things to return to normal," he said.