Potential Impact of New Hormuz Transit Fees on Oil and Shipping Costs

Jul 18, 2026

68 min

Jul 18, 2026 00:30

Will a new Hormuz fee make oil and shipping more expensive?

## Proposed Hormuz Transit Fees

Iran and Oman are considering implementing transit charges for ships passing through the Strait of Hormuz. This move could create a significant revenue stream, potentially generating $6.8 billion annually based on pre-war shipping volumes. The fee would surpass the $4.7 billion earned by Egypt from the Suez Canal in the 2025-26 financial year.

## Impact on Global Oil Trade

The Strait of Hormuz is a critical passage for about 20% of the world's oil consumption. Iran's proposed fee is approximately $1 per barrel of oil, equating to 1.2% of the current Brent crude price. This charge would be higher than those in other strategic waterways like the Turkish Straits and the Suez Canal.

## Economic Implications

While the direct cost of the fee might seem minor, it could affect the broader supply chain, impacting fuel, air travel, and freight costs. Oxford Economics suggests that a transparent fee structure could offset these costs by reducing risks and improving confidence. However, the system's success depends on consistent adherence by all parties involved.

## Strategic Alternatives

In response to potential higher costs, Gulf countries are exploring alternative export routes. The UAE and Saudi Arabia are investing in pipelines and ports to bypass the Strait of Hormuz, which could decrease the volume of oil passing through and limit future revenue from the proposed fees.

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