Iran's Majlis National Security Committee passed an 11-article Strategic Action Plan for Hormuz and Persian Gulf Security, Mehr News Agency reported in Farsi on 20 May1. The bill mandates that all passage fees be collected exclusively in Iranian rial, bans vessels from nations 'that participated in the imposed war', requires war-damage reparations before such vessels may transit, and enforces compliance through seizure and 20 per cent cargo confiscation. The committee passed it; the Majlis has not scheduled a floor vote.
The rial-only clause cannot coexist with the operational reality. The PGSA (the IRGC-backed Persian Gulf Shipping Authority that administers Hormuz tolls) launched its vessel-submission portal on 18 May accepting yuan wire transfers up to $2 million per vessel and Bitcoin payments; the formal fee schedule promised that day remains unpublished. If the bill is signed in its current form, Iran's legislature will have made its own enforcement mechanism unlawful in its own currency rules. Beijing has been paying through the yuan channel the legislature now wants to ban.
Brent Crude settled at $105.54 on Wednesday 20 May, down 5.16 per cent from the $111.22 close on Tuesday 19 May. The $5-per-barrel spread between Brent and the IEA's May projection of $106, which Goldman Sachs and Morgan Stanley had identified as a structural insurance premium, compressed to near-parity in a single trading session. The market priced diplomatic optimism the waterway did not honour: Windward's maritime tracker logged only 2 commercial transits through the strait on 20 May, down from 7 on 19 May and against a pre-crisis baseline of roughly 95 per day2. Roughly 18 million barrels of crude per day that normally moves through Hormuz sat in anchorage or was diverted onto slower routes.
Lloyd's of London's Joint War Committee still conditions the reopening of Hormuz war-risk cover on written rules of engagement from either the 26-nation coalition or PGSA; hull rates priced at 110-125 per cent of vessel value on the secondary market. The Majlis rial bill adds a second governance incompatibility on top of the missing tariff: a coalition ROE cannot mention rial without conceding Iranian sovereignty over the strait, and a PGSA ROE that names rial blocks the yuan channel Chinese buyers depend on. The benchmark fell 5.16 per cent in screen terms while the physical waterway carried two vessels. One kinetic event or a defeated Senate floor vote and the structural premium re-emerges by Saturday.
