finance
US Warns Shipping Firms of Sanctions for Iran Strait of Hormuz Fees Amid Ongoing Conflict
The United States warned shipping companies of potential sanctions for paying Iran fees for safe passage through the Strait of Hormuz. The alert follows Iran's imposition of tolls amid a naval blockade and ongoing ceasefire. President Trump rejected Iran's latest war-ending proposal as negotiations continue.
May 2, 3:15 AM·2m read3 sources
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The United States warned shipping companies that they could face sanctions for making payments to Iran to safely pass through the Strait of Hormuz. U.S. Office of Foreign Assets Control, targets Iran's practice of charging fees for detouring ships through alternate routes closer to its shoreline.
The Office of Foreign Assets Control stated that payment demands could include transfers in cash, digital assets, offsets, informal swaps, or other in-kind payments, including charitable donations and payments at Iranian embassies. The Treasury Department issued the advisory on Friday, warning American shippers not to pay Iran its toll for going through the Strait of Hormuz or face possible sanctions.
Iran has imposed taxes for safe passage through the strait, forcing ships to pay a $1 fee for every oil barrel on a tanker trying to get through the strait.
Some ships have paid up to $2 million in toll fees so far, according to The Hill. persons about the sanctions risks of making payments to or soliciting guarantees from the Iranian regime for safe passage, regardless of payment method.
About a fifth of the world’s trade in oil and natural gas passes through the Strait of Hormuz at the mouth of the Persian Gulf in peacetime. U.S. and Israel launched a war on February 28.
Iran effectively closed the Strait of Hormuz to normal traffic. Iran began offering some ships safe passage by detouring them through alternate routes closer to its shoreline. Iran charged fees for the safe passage service at times.
The United States responded to Iran’s closure of the strait with a naval blockade on April 13. U.S. naval blockade prevented any Iranian tankers from leaving. U.S. Central Command stated that 45 commercial ships have been told to turn around since the blockade began.
U.S. President Donald Trump rejected Iran’s latest proposal to end the war between the countries. 'They want to make a deal, I’m not satisfied with it, so we’ll see what happens,' Trump said on Friday at the White House.
