Iran imposes new fees on ships passing through Strait of Hormuz

Iran has begun charging ships a fee of around $2 million to transit the Strait of Hormuz, a critical waterway for global oil shipments. The country is tightening its control over the strait, which sees about one-fifth of the world's oil pass through it.

This move is creating significant pressure on global oil markets and the economies of countries that rely on the strait for energy imports. Reports indicate Japan's factories and transport providers are already feeling the squeeze, and the oil trading firm Vitol says the market is 'singularly focused' on the situation at Hormuz.

In response to the disruption and higher costs, some countries are taking drastic measures. Pakistan, for example, has reportedly raised domestic fuel costs by 200%. The situation is also accelerating a shift in energy policy within Iran itself, where officials are now promoting electric vehicle uptake as a matter of national security to reduce dependence on imported fuel.