Senior Iranian leader Major General Mohsen Rezaei has called for the establishment of an insurance mechanism for ships transiting the Strait of Hormuz, arguing that vessels involved in incidents should be covered to reduce risks. Rezaei, a former commander in Iran's Islamic Revolutionary Guard Corps (IRGC) and senior adviser to Iran's Supreme Leader, stated that the associated costs should be borne by oil transporters rather than the Iranian people.
Proposal Details
Speaking in an interview with US-based NewsNation on Thursday, Rezaei outlined Tehran's position on the future of the strategic waterway amid ongoing discussions over regional security. He said there were ongoing discussions over fees and service costs related to passage through the Strait of Hormuz. "Regarding fees, there is a cost to mention in this matter. There is a tolls discussion and a fees discussion. There is a discussion about service costs in the Strait of Hormuz," he said.
Rezaei emphasized Iran's desire to ensure security and environmental protection in the maritime corridor while proposing an insurance framework for commercial vessels. "Yes, we want to maintain the security of the Strait of Hormuz. We want to protect the environment of the Strait of Hormuz. We must establish an insurance mechanism so that ships involved in incidents or encountering problems are covered to reduce their risk," he added.
Financial Responsibility
Rezaei further stated that the financial burden of such measures should not fall on Iran. "When we provide all of this, these costs cannot come out of the pockets of the Iranian people. These costs must be collected from those who are transporting oil through the Strait of Hormuz," he said.
US Response
The issue of levying fees on vessels transiting the Strait of Hormuz has emerged as a key point of contention between Tehran and Washington as part of their talks. Iran has argued that ships using the strategic waterway should contribute towards security and related services, while the United States has repeatedly rejected any proposal for tolls or maritime transit fees, maintaining freedom of navigation through the international shipping lane.
US President Donald Trump reportedly slammed the idea, saying it would be "unacceptable" to him if any Iran deal included fees on shipping or maritime activities in the Strait of Hormuz. Trump, while talking to reporters during his meeting with NATO Secretary General Mark Rutte on Wednesday, said, "It would be unacceptable to me because we have numerous straits that, if you did that for them, you'd have to do for other people. You have other straits; well, I wouldn't allow it there either. Yeah, it would be a game changer."
Iran's Assurances
Trump earlier also claimed that Tehran has given formal assurances to Washington on not imposing transit charges on vessels navigating the vital Strait. The Strait of Hormuz, a global maritime chokepoint that facilitates nearly 20 per cent of the world's seaborne oil trade, has been a source of volatility following reports of potential Iranian regulation of traffic.
Seeking to calm industry fears, Trump took to Truth Social to relay the commitment from Tehran: "Iran has informed us that there will be 'NO TOLLS, NO INSURANCE COSTS, & NO OTHER CHARGES OF ANY KIND' on commercial shipping." He underscored the gravity of the pledge with a clear diplomatic ultimatum: "If this is false information, negotiations would end, immediately!"
