Proposed Hormuz passage deal not feasible for shipping industry, sources say
Under the latest proposal, Tehran would be able to intervene if necessary with any inbound traffic, while outbound traffic would follow a route between Iran and Oman.
Four industry sources have stated that a proposed deal between Iran and Oman to control ships passing through the Strait of Hormuz is not feasible for the shipping industry. This is due to US sanctions and restrictive insurance clauses on payments, which could lead to asset freezes and termination of insurance cover. The Strait of Hormuz, a narrow waterway between the Gulf and the Indian Ocean, is the primary route for about a fifth of global oil supplies and other vital goods, and its control has been the main obstacle in ending the conflict.
A senior Iranian source revealed that Tehran would have control over inbound traffic, while outbound traffic would follow a separate route between Iran and Oman, with exit clearance granted after notifying Iran. However, the shipping associations have expressed concerns that introducing compulsory charges for transit or service fees would act as a toll in all but name, potentially undermining the internationally recognized legal framework governing straits for international navigation.
Iran seeks fees ranging from 5% to 7% of the cargo price, while Oman proposes around 3%, and the US opposes any fees. The UN's International Maritime Organization stated it could not comment on the proposals, but it had previously emphasized the need for non-discriminatory and unimpeded transit through the traffic separation scheme.
The US Treasury has prohibited US persons from receiving services from Iran's government related to the Strait of Hormuz, creating additional compliance issues for shipping companies.
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