Reports of a new understanding to allow safe transit in the Strait of Hormuz have increased this week, as Iran seeks to exert control and leverage amid peace talks with the US.
Hassan Ghashghavi, spokesman for the Iranian parliament’s National Security and Foreign Policy Committee, said a general framework had been agreed with Oman, although Muscat hasn't commented.
The final text and details still needed approval at higher levels, the lawmaker added, which further showcased Iran's attempt to project an image of authority over the strategic waterway. Iran and Oman have agreed a general framework to formalise shipping administration through the Strait of Hormuz, though final details require higher-level approval.
The proposed system would split traffic management, with Iran co-ordinating vessels entering the Arabian Gulf and Oman overseeing those exiting.
The key unresolved issue is fees, with Iran reportedly seeking charges equivalent to roughly 5 per cent of cargo value, which the US has rejected.
Ships can currently transit the strait without paying fees, under a 60-day window established by a US-Iran Memorandum of Understanding signed on 17 June.
A "future administration of navigation", including services and associated costs, would be jointly managed by the two countries, their June joint statement said.
What is the deal about?
The deal is intended to formalise and administer shipping through the Strait of Hormuz, despite the US and other countries rejecting any attempt by one side to manage the strait without consensus.
The proposed system would divide traffic between the Iranian and Omani sides of the waterway. Iran would manage and co-ordinate vessels entering the Arabian Gulf, while Oman would manage and co-ordinate vessels exiting the Arabian Gulf.
Vessels would also use designated routes and corridors, rather than transiting under the pre-existing system adopted by the International Maritime Organisation (IMO) in 1968, which consists of two lanes and a safety zone between them.
The reported arrangement would formalise the use of alternative shipping corridors, with Iran and Oman taking responsibility for routing traffic through their respective waters. Negotiations are still focused on the extent of that authority and whether ships would pay fees for services.
Iran and Oman already agreed in June to establish a joint working group to negotiate future navigation arrangements.
Their June 23 joint statement said the two countries would work together on the “future administration of navigation”, including services and their associated costs.
On June 24, Oman said it was working with the IMO to provide a temporary maritime corridor for vessels.
Reuters reported that Iran was seeking to impose fees on vessels equivalent to roughly 5 per cent of the value of their cargo. The US refused to pay any fees for vessels crossing.
How does it fit into the US-Iran deal?
The US-Iran Memorandum of Understanding was signed on June 17, establishing a 60-day negotiating period and requiring Iran to consult Oman and the Gulf states on future maritime arrangements.
Ten days later, Iran and Oman signed their agreement setting out the basis for managing navigation through the Strait of Hormuz, effectively providing a framework to implement that commitment.
The two sides have since been negotiating the practical details, including shipping routes, traffic management and maritime services. The main unresolved issue is fees, as the US-Iran agreement stipulated that commercial passage should remain fee-free for 60 days.
For now, ships can transit the strait without paying fees. No agreement has been reached on what's next.
Washington will assess whether the new framework fulfils Tehran’s commitments under the US-Iran agreement before the sides sign a final memorandum setting out the long-term rules for navigation through the strait.
