Iran and Oman have started official discussions about how to manage navigation in the Strait of Hormuz. This includes maritime services and their costs, which has become urgent in light of a recent U.S.-Iran agreement....
Iran and Oman have started official discussions about how to manage navigation in the Strait of Hormuz. This includes maritime services and their costs, which has become urgent in light of a recent U.S.-Iran agreement.
The discussions were made public on Tuesday through a joint statement following meetings in Muscat. Omani officials met with an Iranian delegation led by Foreign Minister Abbas Araghchi and Mohammad Bagher Ghalibaf, the Speaker of Iran's parliament.
Both nations announced they would create a joint working group in their foreign ministries. This group aims to reach an agreement on navigation management in the Strait of Hormuz and determine the services and associated costs according to international standards.
This aligns with Article 5 of the recent U.S.-Iran memorandum, emphasizing Iran's key role in future maritime service discussions in the Strait.
According to this article, Iran has promised to do its best to ensure safe passage for commercial vessels through the Strait of Hormuz and the Persian Gulf. The memorandum also indicated that Iran would consult with Oman to set up maritime services and administration before talks with other Gulf states take place.
The Oman-Iran statement marks the first formal step in this process.
Both countries stressed that all future arrangements must respect "the sovereignty and rights of the two coastal states." They also reaffirmed their commitment to keeping the Strait "a secure and open waterway for international navigation."
However, the mention of services and costs may raise concerns for the shipping industry.
The memorandum states that no tolls will be charged for the first 60 days, but it is unclear what will happen afterward. This uncertainty is a significant worry for shipowners, insurers, and charterers as they navigate the post-war operating environment.
Regarding this, U.S. Secretary of State Marco Rubio told reporters on Tuesday that Iran should not be able to impose tolls in the Strait of Hormuz.
“It’s an international waterway. No country is allowed to charge tolls or fees on an international waterway. That’s existing international law. And we expect it to be the same here. I think all the countries in this region would agree with us,” Rubio said.
INTERTANKO Marine Director Phillip Belcher cautioned last week that the future of transit charges is still unclear.
“While the MoU says there won't be any tolls for the first 60 days, future arrangements will be decided by Iran in discussions with Oman and the Gulf states,” Belcher stated.
He added that any outcomes must ensure that the Strait of Hormuz remains free of charges and open for everyone as per international law.
The joint Oman-Iran working group will discuss not only navigation but also the various services and their costs. The statement did not specify these services, raising questions about whether they might include traffic management, pilot services, security coordination, emergency help, mine clearance, or other administrative roles.
These considerations are crucial because the Strait of Hormuz is recognized as an international route, which should allow for free passage according to the U.N. Convention on the Law of the Sea. Shipping organizations have repeatedly warned that implementing tolls or fees could go against this principle.
The World Shipping Council stated that ships must be able to pass through the Strait “safely, securely, and without tolls.” The International Maritime Organization (IMO) has also previously indicated that there is no legal ground for payments or special conditions in the Strait.
In a statement reported by the Oman News Agency, Muscat announced that its efforts concerning the Strait follow international law, ensuring freedom of navigation without transit fees.
This statement coincided with Oman's plan to set up a temporary maritime corridor through the Strait, indicating that Oman does not support a toll-based transit system.
This stance may be significant as Oman and Iran start discussions on navigation management, maritime services, and related costs in the waterway.
The discussions are happening as the Strait is already functioning under a new and complex dual-route system.
The U.S.-led Joint Maritime Information Center reported that commercial vessels are currently using both a northern route controlled by Iran and a southern route through Omani waters. The northern route is administered by Iran’s Persian Gulf Strait Authority, while the southern route is supported by the U.S. Navy.
According to JMIC, ships using the southern route can operate day or night, provided they have their AIS on, radars functioning, and standard VHF communications in use. Coordination with the U.S. Navy's Naval Cooperation and Guidance for Shipping organization is suggested but not mandatory.
CENTCOM emphasized that the U.S.-backed route provides clear passage without “arbitrary requirements or obstacles,” suggesting a contrast to Iran's permission-based approach regarding the northern corridor.
INTERTANKO noted that Iran has already begun actively managing traffic on the northern route, including telling several ships they needed permission to transit on June 18-19.
The Oman-Iran statement highlights a bigger issue for shipping: while the Strait is open, the rules surrounding its future are still being negotiated.
These negotiations are taking place amid unresolved risks. Mines are reported in and around the Traffic Separation Scheme, with the MoU stating that Iran bears the primary responsibility for removing them. Industry groups report that mine clearance has not officially started.
Traffic is gradually increasing but remains significantly below pre-war levels. U.S. Central Command stated that on June 20, 55 merchant ships passed through the Strait with cargo and over 17 million barrels of oil, while JMIC noted lower daily transit numbers compared to the historical average of about 138 vessels per day.
At this point, Oman and Iran are framing their discussions as a basis for safety, stability, and freedom of navigation. However, for shipowners, the main concerns remain practical: who will oversee navigation, which services will be mandatory, who will cover the costs, and whether the Strait will stay open to international shipping without fees or requirements for permissions.