Iran’s plan to extract a $2m payment from tankers using the strait of Hormuz could raise costs for years to come
A second round of peace talks between the US and Iran has begun amid renewed attacks on oil tankers in the strait of Hormuz and a US blockade on Iranian vessels through the crucial trade route.
The future of this narrow waterway – and curbs on Iran’s nuclear programme – are at the centre of the talks after Tehran’s de facto blockade on oil and gas tankers via the strait pushed up energy prices.
Iran’s plan to maintain a chokehold on the strait by extracting a payment of $2m from each passing tanker has raised concerns that “Tehran’s tollbooth” for Middle Eastern oil could lead to higher prices for years to come.
Here we look at what the strategy could mean for oil markets and the world economy.
