An Iranian parliamentary committee is reviewing a preliminary bill that would formally bar United States, Israeli and other “hostile” vessels from transiting the Strait of Hormuz, according to Iran’s semi-official Fars news agency, in a move that risks reigniting one of the year’s most consequential maritime standoffs.
The draft legislation would impose fines of up to 20 per cent of a ship’s cargo value on vessels found in violation of the proposed restrictions, Fars reported, citing an unnamed Iranian lawmaker. The lawmaker said the bill remained under expert review, with parliament having invited specialists to submit recommendations before a final version is drafted, according to Reuters reporting carried by Al-Monitor.
Iran-US War Latest News: How Did The Strait Become A Flashpoint This Year?
The Strait of Hormuz, through which around a quarter of the world’s seaborne oil trade and a fifth of its liquefied natural gas once passed, became a central battleground after the United States and Israel launched strikes against Iran on 28 February, targeting the country’s nuclear and ballistic missile programmes. Iran responded by declaring the strait closed to all foreign shipping, with the Islamic Revolutionary Guard Corps issuing warnings, boarding and attacking merchant vessels, and laying sea mines, in what the Guardian described as a “dual blockade” once the United States began its own counter-blockade of Iranian ports.
Iran-US War Latest News: Has The Ceasefire In Middle East Actually Been Held?
A memorandum of understanding reached in mid-June sought to formally end the conflict and reopen the strait, but Iran continued threatening and attacking commercial vessels in the weeks that followed, prompting renewed American strikes after three ships were attacked on 6 and 7 July. US President Donald Trump declared at the time that he considered the earlier truce to be over, before later suggesting the exchange of fire would not escalate into long-term military action, even as fighting intensified in the days that followed.
A conditional ceasefire remains in place, extended pending the conclusion of further talks, though shipping levels through the strait remain very low, with the House of Commons Library noting a roughly 95 per cent reduction in crude oil vessels and a 99 per cent reduction in LNG carriers compared with pre-conflict levels.
Iran-US War Latest News: What Would Iran’s New Legislation Actually Change?
The bill under review marks an attempt to formalise, through domestic law, the kind of restrictions Iran has already sought to enforce militarily since the conflict began. Since launching its aerial campaign to reopen the strait in March, the Pentagon has reported striking Iranian naval vessels, and drones believed to be involved in mine-laying operations, while the IRGC has separately declared that any American, Israeli or allied vessel passing through the strait would be treated as a legitimate target.
Codifying financial penalties for violations would give Iran’s stated restrictions a formal legal basis, though it remains unclear how or whether such fines could be enforced against foreign-flagged vessels navigating an internationally recognised shipping lane.
Iran-US War Latest News: Why Does This Matter Beyond The Region?
Given the strait’s outsized role in global energy markets, any further disruption threatens to compound fuel shortages and price spikes already felt in Asia and beyond since the conflict began. With the draft bill still under expert review and no timeline set for its finalisation, the legislation’s progress through Iran’s parliament is likely to be closely watched by shipping firms, energy markets and Western governments alike as they assess whether the fragile ceasefire governing the strait can hold through the autumn.
