Iran demands insurance fees for Strait of Hormuz passage as oil price hovers above pre-war levels

The oil price is hovering just above pre-war levels, but its future trajectory remains uncertain after Iran announced it will seek 'insurance fees' for vessels passing through the Strait of Hormuz. The Iranian government agency declared that ships must hold a Tehran-approved insurance policy to use the vital waterway, effectively imposing a levy on international shipping. The move threatens to disrupt one of the world's most important chokepoints for oil shipments, through which about a fifth of global petroleum passes. Analysts warn that the additional cost and bureaucratic hurdle could tighten supply and push prices higher, though the immediate market reaction has been muted. The insurance fee demand adds a new layer of geopolitical risk to an already fragile energy market, where supply concerns have been amplified by ongoing tensions in the Middle East. The exact fee structure has not been disclosed, but the requirement for Iranian-approved insurance suggests Tehran is seeking both revenue and control over maritime traffic. Shipping companies and oil traders are now assessing the implications, with some vessels already rerouting to avoid the Strait. The development comes as the oil price remains just above levels seen before the recent conflict, but the uncertainty over supply routes could alter that balance. The Strait of Hormuz is a narrow channel between Iran and Oman, and any disruption there has historically triggered price spikes. Iran's latest move signals a more aggressive posture in leveraging its geographic position, potentially using the insurance fees as a tool for economic leverage. The international community has yet to respond, but the Gulf states and major consumers are likely to view the policy as a threat to free navigation. For now, the oil market is watching closely, with the future price direction hanging on how the insurance fee scheme will be implemented and enforced.