India Rejects Iran Toll Proposal for Strait of Hormuz

India has reiterated its demand for free and unrestricted navigation through the Strait of Hormuz, as reports emerge of Iran proposing transit fees on vessels using the vital waterway amid a fragile two-week ceasefire in West Asia. The strait, a narrow passage between Iran and Oman connecting the Persian Gulf to the Arabian Sea, carries about one-fifth of the world's oil and liquefied natural gas shipments, making it essential for global energy trade. For India, which sources a significant portion of its crude oil and liquefied petroleum gas through this route, the developments raise immediate concerns about potential disruptions and added costs.

The proposals surfaced as part of Iran's 10-point plan for ending the ongoing conflict involving Iran, the United States, and Israel. Iranian officials have suggested fees could reach up to $2 million per vessel or $1 per barrel of oil cargo, depending on ship type and load, with payments potentially in cryptocurrencies like Bitcoin, stablecoins, or Chinese yuan to circumvent international sanctions. A spokesperson for Iran's Oil, Gas and Petrochemical Products Exporters Union stated that tankers would need to email cargo details for...