Iran announces preferential Strait of Hormuz fees for China and allied nations

Jul 4, 2026

Following a four-month war with the US and Israel, Iranian Ambassador Abdolreza Rahmani Fazli announced that Iran and Oman will impose new service fees on ships transiting the Strait of Hormuz. Friendly nations, specifically China, will receive preferential fee treatment. While the US and Gulf Arab nations reject any fees, European nations view them as inevitable but urge non-discrimination. China, which buys almost all of Iran's oil, has called for unhindered shipping flow to protect its economy.

Strait of Hormuz preferential fees

▪Iranian Ambassador to China Abdolreza Rahmani Fazli announced that China and other friendly nations will receive special considerations regarding service fees in the Strait of Hormuz
▪Iran plans to levy Strait of Hormuz service fees to fund security of passage, vessel supervision, and environmental mitigation
▪Iran is collaborating with Oman to establish new arrangements and service fees for vessels transiting the Strait of Hormuz

US-Israel war on Iran

▪Iran effectively closed the Strait of Hormuz during the conflict, which normally carries one-fifth of global oil and liquefied natural gas supplies
▪The United States and Israel engaged in a four-month war against Iran starting in late February 2026

Strait reopening negotiations

▪An interim peace deal signed in June 2026 allowed commercial ships to transit the Strait of Hormuz free of charge for 60 days
▪At least eight ships attempting to exit the Persian Gulf along the Omani coast turned back between July 3 and July 4, 2026

International responses to fee proposal

▪The United States and Gulf Arab countries reject any fees for transiting the Strait of Hormuz, while some European nations view fees as inevitable
▪European officials have pressed Iranian and Omani authorities not to discriminate against ships based on nationality if fees are implemented

China-Iran relations

▪Chinese Foreign Ministry spokesman Guo Jiakun called for the unhindered flow of shipping through the Strait of Hormuz on July 3, 2026
▪China purchases almost all of Iran's oil exports and has provided diplomatic support to Iran mainly through Pakistan during the conflict