Iran, Oman map Hormuz route as fees, sanctions cloud reopening

Iran said it had reached an understanding with Oman on the coordinates of a new shipping route through the Strait of Hormuz, though the arrangement falls short of an agreement to restore normal traffic through the waterway.

Iranian foreign ministry spokesman Esmaeil Baghaei said the two countries were preparing a joint announcement after “professional” negotiations. He cautioned that agreeing on a route would not by itself guarantee security in the strait, which handled about a fifth of global oil supplies before the war involving Iran, Israel and the US began in February.

Oman has not issued the promised joint announcement. Its foreign ministry said in June that the two countries had established a working group to discuss the “future administration” of navigation, the services that could be provided and their costs. Oman has continued to call for free navigation in accordance with international law. Oman foreign ministry.

The proposal under discussion would give Iran authority over vessels entering the Gulf. Outbound ships would use a route between Iranian and Omani waters and obtain clearance through Oman after Iran had been notified, Reters reported, citing people familiar with the talks.

That division of control is among the issues still being negotiated. So are the charges Iran and Oman may seek to collect.

Iran wants fees equal to 5% to 7% of the value of cargo passing through the strait, while Oman has discussed charges of about 3%, the report said, citing a senior unidentified Iranian official. Washington has rejected any compulsory payment.

Those demands could make the proposed route unusable for commercial shipping. The US has sanctioned the Persian Gulf Strait Authority, established by Iran to run the waterway, while a clause introduced by Lloyd’s Market Association allows war-risk insurers to terminate cover if a ship pays a Hormuz toll or transit charge, Reuters reported.

The International Maritime Organization has said passage through the existing traffic-separation scheme should remain free, non-discriminatory and unimpeded.

Iran has also said a wider reopening depends on the US ending its blockade of Iranian ports. The US reinstated the blockade on 14 July after an earlier ceasefire broke down.

Shipping data show that talk of an agreement has not yet reassured owners. Only 33 vessels crossed Hormuz between Monday and Thursday, down from 50 during the corresponding period a week earlier. Before the war, about 130 to 140 vessels typically used the strait each day.

Chinese and Indian refiners have sought ships to collect heavily discounted Iraqi crude from Basrah, but no vessels had been fixed because owners remained wary of entering the strait.