Iran moves to ban U.S., Israeli ships from Hormuz, charge toll : NPR

Iran's parliament is reviewing a plan to ban ships linked to the U.S., Israel and other "hostile countries" from transiting the Strait of Hormuz. The Trump administration has rejected the plan.

Iran's parliament is reviewing a plan to ban ships linked to the U.S., Israel, and other "hostile countries" from transiting the Strait of Hormuz, a crucial waterway for global oil trade. The plan, proposed by Iranian lawmakers, would impose fees on other ships passing through the strait, with the revenue used to compensate Tehran for war damage. The Trump administration has rejected the plan, but Iranian state media reports that lawmakers are pushing forward with the proposal. The strait is a vital chokepoint for the world's oil supply, with an estimated 20% of global oil exports passing through it.

If the plan is implemented, it could lead to a significant increase in gas prices for American consumers. The Strait of Hormuz is a critical artery for oil exports, and any disruption to traffic could drive up prices at the pump. According to the U.S. Energy Information Administration, a disruption to oil supplies in the strait could lead to a price increase of up to $10 per barrel, which would translate to an increase of around 25 cents per gallon of gasoline.

The proposal is the latest escalation in a long-standing dispute between Iran and the U.S. over access to the Strait of Hormuz. In 2019, the U.S. imposed sanctions on Iran's oil exports, which led to a significant decline in Iranian oil sales. In response, Iran has threatened to close the strait to all shipping traffic, which would have devastating consequences for the global economy. The current proposal is seen as a more targeted approach, but it still reflects the deepening tensions between the two countries.

The Iranian parliament is expected to vote on the proposal in the coming weeks, although no specific date has been set. If the plan is approved, it could lead to a confrontation with the U.S. and other countries that rely on the strait for oil imports. Interestingly, the proposal may not be as straightforward as it seems – some analysts believe that Iran may be using the plan as a bargaining chip to negotiate better terms with the U.S. and other countries, rather than actually intending to implement it.