As the political tensions and diplomatic activity keep growing in the region, Iran has announced a new administrative and technical system to manage ship movement in the Strait of Hormuz, according to the reports on Sunday.
Iranian officials have said that the new system will control the movement of ships through specific routes in the important waterway. A formal announcement about the system is expected soon, according to the reports.
According to Ibrahim Azizi, head of the Iranian parliament’s national security and foreign policy committee, only commercial ships that follow Iran’s rules and cooperate with the system will receive its benefits.
The new system will also include fees for ships using the sea routes. Iranian authorities say the charges will be taken in return for services and security arrangements.
Iran says the purpose of the system is to make sea traffic more organised and safer. And to reduce the risk of tension or accidents in the sensitive waterway.
Reports also suggest that some of the European countries have started talks with Tehran to make sure that the safe movement of their ships through the Strait of Hormuz.
The Strait of Hormuz is one of the world’s most important routes for global oil and trade shipments. Any new security or administrative system in the area could directly affect international markets and global politics.
Oil ticks higher with Strait of Hormuz crisis
International oil prices have moved higher as traders closely tracked a key meeting between Donald Trump and Xi Jinping, according to recent reports. There are also hopes that the talks could influence the ongoing Iran conflict and ease pressure on global supply.
Prices of Brent crude rose by 26 cents to $105.89 a barrel. US West Texas Intermediate gained 32 cents to reach $101.34 in early trading.
The modest increase followed a sharp decline a day earlier, when both benchmarks fell on concerns that rising fuel costs could lead to higher US interest rates and slow demand.
