Iran’s ambassador to China says Tehran is preparing to charge new fees for vessels transiting the Strait of Hormuz, while offering “special considerations” to China and other “friendly” countries.

Speaking in Beijing at the World Peace Forum, Ambassador Abdolreza Rahmani Fazli said Iran views the strait as part of its territorial waters, adding it would therefore “definitely” charge service fees. He emphasized the fees would not be a “toll,” and said the purpose is to support security of passage, oversee vessel transit, and address environmental impacts from heavy shipping.

Fazli said Iran is working with Oman on “new arrangements” for the strait. Oman and Iran have established a joint committee to determine how the waterway will be managed, and he linked the strait’s current role to its heightened “security” importance amid the recent conflict.

The ambassador’s comments come amid uncertainty over the terms of a deal Iran and the United States agreed on last month to halt hostilities. The interim arrangement reportedly allows commercial ships to transit the strait free of charge for 60 days, but it has been unclear what rules will apply afterward. The U.S. has said that under any final agreement Iran would not be permitted to charge tolls or fees for vessels.

Fazli also indicated that Iran’s approach to service fees would vary for China and other friendly nations. He noted that in peacetime around one-fifth of the world’s crude oil and liquefied natural gas passes through the strait, which was heavily disrupted during the earlier war dynamics.