Looks like the situation in Iran is heating up, and a peace agreement might be on the horizon. Iran claims there won’t be any toll charges, just an environmental protection fee, and I think they mean it.
This fee could end up being in bitcoin. But who knows, the US might unfreeze Iran's assets and lift the sanctions, which could lead Iran to change its mind.
Also, there's a good chance this conflict could actually help Iran profit from the ships passing through the Strait of Hormuz.
If the environmental protection fee is something that has been there, the environmental fee is replacing the toll fee and is very low compared to the toll fee if not the environment fee is just a name change from the toll fee.
Although I think the US will want the environmental fee to be charged in the US dollars.
Although this is a step in the direction of peace in this war of the strait.
I like that you wrote this because some may think The strait of Hormuz has been Irans money maker, making money from ships passing but thats not true because the strait was a free international pass way for ships. Although they made money from the war they also spent their own money during the war.
Iran is being very smart on this war, taking back what they right through negotiations instead of escalations, the peace deal if followed through, Iran is giving to have some freedom that their previous doesn't have, like fees charges on the straits.
Environmental charges is very much more internal and Iran focused which give them the right to charge shipment based on their own considerations and term's.
The payment could be in whatever currency which will be agreed on by all parties involved.
Iran can rename what they want to do in the strait from "toll" to "fee", but i don't think it changes the actual action, which is that they want to charge vessels for passing the Strait of Hormuz, and i am pretty sure the U.S. would reject this environmental protection fee proposal.
The Strait of Hormuz is an international waterway and even if it cuts through their territory, it does not give them "ownership" of it. The law (UNCLOS) does not support this. Though there is one part of the law they may want to exploit here:
They could argue based on this point, but if their intention is to charge every vessel, irrespective of actual services rendered, then it does not fall in line and it is extortion. And it should be rejected by not only the U.S., but the rest of the world, because it would set a very dangerous precedent going forward.
Yes it a wise idea the Iranian government has made because without this kind of decision the war would have been more rough that how it is now, besides this helps in the supply and circulation of oil which in due time make it possible for the price of fuel for fall a little when is is in circulation. It's a true act of bravery that the Iranian government played which will not only favour the government but also safe the lilifes of many when the peace deals have been signed
What is a wise idea? You call a proposal that aims to extort vessels passing an international waterway a wise idea, you cannot be serious. Mind you, we are not talking pocket change here, Iran would want to impose tax that would run in millions and somehow you consider it to be a great idea. Iran may have changed the semantics from "toll" to "fee/tax", but you do not need to be a genius to know it is still the same plan at extortion, and it should be rejected by all and sundry.
The strait of Hormuz change from toll fee to environmental fee is still fees and if there was nothing like fees before now for ships to pass through the strait then it means that Iran is bent on extorting money from the ships with a milder reason. The impact of the fees would still affect the global oil price because the shipowners are business people whatever costs that is uncured before delivery will be paid by the final consumers.
This matter of taxing oil ships at the strait of Hormuz has gone beyond Iran's war with America, other well meaning countries should add their voices to condemn it. I don't know much about maritime laws but if other countries are not taking tolls from ships that are passing through their waterway territories then Iran should be stopped otherwise it will become a global practice which will affect the prices of all exported goods from other countries.
Yeah, no. Iran doesn't give a toss about the environment any more than the current US administration, which is practically zero. It's just a cover story because other nations are not going to accept their ridiculous demands for new tolls, especially as the waterway is not theirs alone but shared with other countries. Honestly, Iran for all their despicable faults, have been winning this media war at the moment even though their government got smashed, but if they start to make ridiculous demands that are any more than a bargaining chip in negotiations to settle - then they're probably going to face even stronger opposition from places like Europe.
As we now due to conflict between Iran and USA the control of Strait of Hormuz is completely in Iran's hand and Iran take some extra charges on ships so due to these taxes all goods especially oil prices automatically increasing worldwide. A little impact on transport directly effects the consumers. International routes of ocean directed by different countries and its depends all and all on political situations. So some countries take some extra charges under the head of environmental policies and these types of charges mainly charged by USA and its allies countries. Strait of Hormuz is main global oil trade route for world so its disruption means that the disruption of global trade market. So these type of major or impactful issues should be resolved by international organizations and through diplomatic discussions to ensure the stability of global trade.
I don't think Iran took this decision out of fear, it is obvious that they aren't scared of anyone and the strait of Hormuz has been their strongest weapon in this war and they feel unshakable having such powers.
I think the reason why they are choosing this is because maybe the negotiation will be in their favor, obviously they must have brought their request to the table and some may have gotten approved.
Wars like this is more of economic than weapons, the military attacks on civilian and military outfits were just to prove that everyone have it borders and citizens interest at heart and they are ready to fight to protect that, this is what most of the time makes both sides making efforts to retaliate any offensive attacks.
Now there are no more bombing, but interest are being negotiated which is where the main point of the war lies.
Let see how both side can negotiate fair deal that can restore and permanently settling any possible future agitations.
At this point companies are okay with it, because the longer it waits there, the more money they lose, and while it is not ideal for corporations to pay more, and they want to make as much profit as possible (literally why they are a business is to make profit) they are still making a bank by paying these fees and for that reason many of them do.
Like I remember there was a single day where it was allowed to pass, this was like maybe a month ago, and 30+ ships passed in a single day, right away, and while others were getting ready and paid, they got blocked again. So it's clear that we are going to see almost every single company paying for these because while they rather not, they still are making profit during this period so paying a fee doesn't make it a loss for them.
I thought that this isn't related to Strait of Hormuz because in the tourism in my country, there's a lot of these environmental fees.
AFAIK, their assets were already frozen and that's why if there will be that kind of environmental fee, they'll have to accept in Bitcoin or any other currencies where US has got no touch in it. The reason why bitcoin is the option is because it's not in the range of the sanction from the US. So, it becomes free from the US' laws and subject to whichever penalty they'll put to Iran. They should give this to Iran just to let it go and end the war. I am sure that the shipping vessels and companies that are passing through there would be happy to comply.
This war is being going on for a long time and we have seen in past few weeks that Iran put a toll fee on the ships that were passing through the strait of Hormuz that causes global inflation. Now Iran has again remove the toll free which is a good news to make peace deal with the US to end this on going war. but situation is still very unclear the idea of taking payment in the form of Bitcoin is quite interesting but still there is no official confirmation from the Iran so that this plan can be fully implemented and functional for the international shipping or making trade payments. If there frozen assets are released then Iran does not need to rely on the alternative payment methods but we should wait for the official agreement and verification from the government.
You think vessels passing an international waterway would be happy to be extorted in millions of dollars, how can you imagine such a thing, who likes extortion? Only those imposing it i'm sure. I don't understand how many of you don't know that this is a terrible proposal that benefits nobody, other than Iran.
It also sets a dangerous precedent, i mean, if Iran is allowed to extort vessels at sea, what stops other countries that border important international route/passage from doing the same?
We're too dumb to think that "toll fee" isn't the same as "environmental protection fee".
Kidding aside, they can call it whatever they want, but it will still be the same. They'll ask for fees to those who will pass the Strait. They can rename it, but for us, it's still the same. As for US unfreezing Iran's assets, this is why both parties are trying to have an agreement that will benefit both sides, and we've seen it in these past few weeks. Maybe the US will unfreeze those assets of Iran and remove the sanctions in exchange of not continuing the enrichment of Uranium and not continuing those nuclear things.
Iran is prepared for this war that's why until now they aren't surrendering even though they're up against a superpower country like the US. As for the Iran asking for fee, I don't know if the US will allow it or what, but let's see.
Nope that will not happen. Also, we don't know if the war will end if this "fee" will push through. Do you also expect that those ships out there will comply? If this happens then it will affect the whole oil industry and the price of oil around the world will permanently increase in prices.
This "fee" thing that the Iran will get will have a domino effect towards other countries. Oil price will increase, and so are the goods, and everything that depends on Oil.
This is funny, you know, and it's disheartening that people here are taking it lightly. In the end, you and I will pay for it, and not the shipping company or the cargo owners. Is that not so? The world is further changing against the people.
To make matters worse, the US will care less because their shipping transaction passing through the region are very few. Now tell me, who lost? Those countries that are not involved in the war, of course!
This is still their toll fees rebranded into "environmental protection and navigational service fees." And I am sure these fees will not be stable but will continually be reviewed and increased over time. Another very ugly development around the international waterways that has not happened before, which violates the core principles of international maritime law. The world should not talk when other countries with such international waterways opportunity are collecting their own fees. Regardless, kudos to Oman for speaking against it despite sharing the same privilege.
The US will not care less like the way you think Trump is saying, you saw inflation hit the country and Iran war is one of the reasons. If other countries will pay for it, it will also affect the United States but just that Trump does not care. Any commodities that has world price will affect other countries even if the countries think it will not affect them.
I'm quite surprised that you came to debate the undebatable. If you consider the arithmetic and economics rounding this, you will know that the US has significantly low trade crossing that path via water, which invariably means Trump will weigh the option as "not much" in latter effect compared to how it would have affected the US if the trade dependence is high. But the problem is that you are only looking at the present.
Mind you, the current hike in oil price doesn't translate to the US dependence on that region, but a global effect caused by war. This will fade away if a deal is agreed upon, and what next? Those people who depends heavily on that route will continue to pay heavily for it. Now, my question is: is the US part of that?
At the end of the day, they won't charge anything from ships for passage. It is not their right, and they simply want to exploit. For the US to allow that, they would need to give up something even more valuable, and even if the US allows that, except for what they are giving up favours other countries, they won't agree to it.
For me, I don't even take all these talks of bitcoin and payments seriously because it's obviously not going to happen, and even if it happens, it won't do anything for bitcoin.
Iran is currently on the losing side of these negotiations. There is a blockade around them currently, meaning all the oil being produced is being stored in the country. They have used storage facilities almost to the maximum capacity and have even used oil tankers as storage. If the blockade is not lifted and they run out of storage capacity, they would be forced to shut down down oil pumps, which is very bad for the wells.
Shutting down an oil pump for about 3 weeks can lead to permanent damage of the well. When a well is running, asphaltene flows and because of the heat, and pressure it doesn't cake together, but the moment the well is shut, they start becoming solid and the longer the well stays shut, the harder they get till it becomes as hard as cement and makes it impossible to drill. This will either need a lot of repairs which cost tones of money or new wells enriely.
Iran is still months away from this situation, but it is in their interest to end this soon, so I doubt they will hold out simply because they want to collect "environment protection fee" from vessels. If they are ready to take the risk and hold out, it will be for something more valuable.