Iran considers bill for military control over Strait of Hormuz

Iranian lawmaker Ebrahim Rezaei announced that a new bill is being considered in Iran’s parliament, aiming to place the management of the strategic Strait of Hormuz under the control of Iran’s Armed Forces General Staff. This legislation would allow for the formalization of inspections, fee imposition, and asset seizures from hostile governments using the waterway. The proposal emerges amidst ongoing tensions in the region, particularly between Iran and the United States, and follows a breakdown of ceasefire agreements. The move could indicate heightened control and potential revenue generation from one of the world’s most crucial maritime chokepoints. Key Takeaways The proposed bill appears to increase the likelihood of Iran implementing transit fees in the Strait of Hormuz, as suggested by recent market trends. Current market pricing for the August 31, 2026, sub-market reflects a 12% probability of fees being charged, a decrease from earlier levels. The December 31, 2026, sub-market shows a 57% likelihood, indicating market participants see a higher chance of fees being charged by year-end. What to Watch Observers should monitor developments in the Iranian parliament regarding th...