Iran to Use Hormuz Strait Fees for Living Standards and Defense, Lawmaker Says

TEHRAN, September 8. /TASS/. Iran will use proceeds from the fees for the passage through the Strait of Hormuz to improve living standards in the country and strengthen its defense, an Iranian lawmaker said.

"During the consideration of this bill [on strategic measures to ensure the security and sustainable development of the Strait of Hormuz], important decisions were made regarding the allocation of revenues generated as a result of the implementation of this law," Hassan Ghashghavi, a member of the parliamentary committee on national defense, said, as cited by the Fars agency.

According to Ghashghavi, the revenues will be channeled to support the population in the form of food vouchers, to strengthen the country’s defense and infrastructure capabilities, with priority being given to provinces affected by military operations, the islands and maritime infrastructure, and air defense, as well as to improve the standard of living of military personnel.

Fars reported on August 6, citing sources in the Iranian Foreign Ministry, that Iran and Oman are negotiating service fees for the passage through the Strait of Hormuz. The exact sum will depend on the volume of services provided by Tehran and Muscat.

Along with talks with Oman, Tehran is considering a bill banning the transit through the Strait of Hormuz for vessels affiliated with the United States and Israel. Abolfazl Zohrevand, a member of the Iranian parliament’s committee on national defense and foreign policy, told TASS that the new bill on the Strait of Hormuz will clearly distinguish between friendly and hostile countries and give Tehran leverage over unfriendly countries.