Iran to introduce mandatory 'maritime insurance' fees for Strait of Hormuz passage
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Iran plans to start a new system for commercial ships travelling through the Strait of Hormuz. The new system will require cargo ships and tankers to pay mandatory service fees for using the waterway. Iran says these fees will help pay for regional security and emergency response services.
The exact date and details of the fee system have not been announced yet. Iran believes it must protect the area because many ships pass through. However, the United States and international groups say the plan could break international law.
The Strait of Hormuz is very important for global oil trade. About 20 percent of the world’s oil uses this route. Changes to the rules or costs might affect oil prices and international shipping. Experts are warning that the new fees could increase tensions in the region.
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Vocabulary
6 wordsrequired by law or rules; not optional
relating to a specific geographic area
officially made something known in public
to keep something or someone safe
involving two or more countries
feelings of fear or anger between groups
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