Date: August 6, 2026
By Kimberly Wilson
TEHRAN, Iran — An Iranian parliamentary committee is reviewing a draft bill that would prohibit U.S., Israeli, and other vessels belonging to countries deemed "hostile" from transiting the Strait of Hormuz, according to Iran's semi-official Fars News Agency. The proposal marks Tehran's latest move amid escalating tensions in the Gulf and ongoing conflict with the United States and Israel.
The draft legislation is currently under consideration by the Iranian Parliament's National Security and Foreign Policy Committee. Lawmakers said the proposal remains under expert review, with specialists invited to provide recommendations before any final version is presented to parliament for debate and approval.
If enacted, the bill would bar ships from the United States, Israel, and other countries classified by Iran as hostile from passing through the strategically vital waterway. It would also impose financial penalties of up to 20% of a vessel's cargo value on ships found to be in violation of the proposed restrictions.
The Strait of Hormuz is one of the world's most important maritime chokepoints, handling roughly 20% of global oil and liquefied natural gas (LNG) shipments. Any restrictions on navigation through the strait have the potential to significantly affect global energy markets and international trade.
News of the proposed legislation contributed to a sharp rise in global oil prices on Thursday. Brent crude gained more than $3 per barrel, while U.S. West Texas Intermediate (WTI) also climbed, as traders reacted to concerns that new restrictions could disrupt shipping through the Strait of Hormuz and further tighten global energy supplies.
The bill comes as Iran continues discussions with regional partners over the future management of shipping through the Strait of Hormuz. At the same time, Tehran has maintained that countries supporting military operations against Iran should not benefit from unrestricted access to waterways it considers central to its national security.
International shipping organizations have expressed concern over proposals that could restrict freedom of navigation through the strait. Maritime industry representatives argue that any unilateral restrictions or transit fees would create legal, commercial, and insurance complications for shipping companies operating in one of the world's busiest energy corridors.
The proposed legislation has not yet become law. It remains under parliamentary review, and no timetable has been announced for a final vote. If approved, the measure could further heighten tensions between Iran and Western countries while adding uncertainty to global energy markets already affected by months of conflict in the Middle East.