Comment by fatbird
15 hours ago
If Iran's 10 points become the basis of the peace, it ratifies Iran's sovereignty over the strait, at which point they can raise the price. It will be years before alternative routes devalue control of the strait, during which time Iran can siphon a lot of money out of passages taxes.
One thing I've not heard much discussion of is alternative routes. In the early days of this war there were discussions i of pipelines but it tapered off pretty fast
Pipelines are possible, but they take time to build. The pipeline would have to cross several countries (depending on what route is taken - look at a map) which makes it much harder. Will Oman even be interested in this? Saudi Arabia I guess could build a pipeline to the red sea entirely internally, every other country in the region would have to cross someone else.
Still if Iran does charge the $1/barrel of oil they are proposing expect the countries in the region to look into a pipeline. That is a lot of money and a pipeline could potentially be cheaper in the long run.
Pipelines are expensive and slow to build and notoriously vulnerable. Also you would need many I to match even half of the Hormuz throughput