Hormuz Toll Could Raise Korea’s Domestic Oil Prices by Up to .5%

If this toll through the Strait of Hormuz is allowed to stand it will set a precedent for other global strategic waterways. What is to stop the Houthis to next charge a toll to pass through the Red Sea? Malaysia and Indonesia could charge tolls to use the Strait of Malacca as well if this is the new precedent. The U.S. has long advocated for freedom of navigation and the Hormuz toll is a direct assault on this concept:

Iran has announced plans to impose tolls on vessels passing through the Strait of Hormuz after a ceasefire with the U.S., and the South Korean government has analyzed that this measure, if implemented, could raise domestic oil prices by approximately 0.5%. Yang Gi-wook, Director of the Industrial Resources Security Office at the Ministry of Trade, Industry and Resources, stated during a briefing by the “Middle East War Response Headquarters” on the 9th, “If tolls are added to the current international oil price level of $90–100 per barrel, a rise of about 1% could occur. Considering that roughly half of domestic gasoline prices consist of taxes, the final consumer price is expected to increase by approximately 0.5%.” However, he added, “It is difficult to specify a response strategy as both the imposition of tolls and their method remain uncertain.”

Chosun Ilbo

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