Iran, Oman near deal to reopen Strait of Hormuz with both countries collecting ‘service fee’: report

Iran and Oman are close to reaching an agreement to fully reopen the Strait of Hormuz to commercial shipping, with both countries expected to collect a “service fee” to cover environmental and security costs, according to a report.

The New York Times, citing Iranian and US officials familiar with the discussions, reported that vessels entering the strait from the Indian Ocean through the Gulf of Oman would be required to use a route passing through Iranian territorial waters.

Ships leaving the Persian Gulf would instead travel along a route near Oman’s coastline on the southern side of the strait.

Iran’s Foreign Ministry confirmed that negotiations with Oman are ongoing to establish what it described as a temporary shipping route through the strategic waterway, which handles about one-fifth of global oil shipments during peacetime.

Saeed Ajorlu, a member of Iran’s negotiating committee, told state broadcaster IRIB that the arrangement could remain in place for between one and three months, during which Iran would play the dominant role.

He said Iran believes the legal framework governing passage through the Strait of Hormuz should not revert to the pre-war arrangement when no single country exercised control over the waterway.

However, a US official told The New York Times that Iran’s description of the proposed agreement was inaccurate, insisting there would be no tolls and that Tehran would not determine which vessels could pass through the strait or which routes they would take.

The Wall Street Journal previously reported that Iranian and Omani negotiators were working toward an agreement to restore commercial shipping, although differences remained over transit fees and navigation rules. A US official said Washington continues to engage indirectly through mediators.

Iranian Foreign Ministry spokesman Esmail Baghaei said there would be no permanent change in the status of the Strait of Hormuz as long as what he described as US hostility and military pressure against Iran continued.

In July, Oman’s Foreign Ministry said its role was to facilitate transparent and neutral cooperation among all parties to restore freedom of navigation in accordance with international maritime law.

Iran and Oman also established a joint working group in June to negotiate navigation, shipping services and the future management of the Strait of Hormuz, while pledging to keep the waterway secure and open for international shipping.

Credit: New York Post

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