Iran to Charge Ships in Hormuz? Ceasefire Deal Could Shock Oil Markets

Under this proposal, Iran and Oman could charge fees on cargo ships, oil tankers and other vessels in the narrow waterway.

Why the Strait of Hormuz Matters

The Strait of Hormuz is at its narrowest point 34 km in width and lies between Iran and Oman. Though tiny, the channel cradles about 20 per cent of the world’s oil supply, making it one of the most important trade lanes on the planet. In addition to oil, many other critical commodities such as fertilisers and industrial supplies travel through this pathway. Any jumbles occur here, and they send the price of oil soaring around the world in short order.

Ceasefire Deal Could Reopen Vital Trade Route

The proposed ceasefire aims to end the 40-day war that began on February 28. The Strait was nearly entirely blocked in the war after attacks on ships and growing military tensions. 

 Now, Iran has said it intends to reopen the route but with a new agreement to charge ships to proceed safely.

The fee amount will depend on:

Type of ship.
Cargo being carried.
Security conditions.
Global trade situation.
This might be a major new revenue for Iran and Oman.

Gulf Nations Oppose the Transit Fee Plan

Gulf Countries Oppose Transit Fee Plan. Various Gulf states including the UAE and Qatar are said to be opposed to charging fees. 

They want the Strait reopened under the rules of free navigation, and say any talks about money should come later. 

US-Iran Ceasefire: Trump Announces 2-Week Pause

President Donald Trump has announced a two-week suspension of US aggression on Iran. This suspension of US action over Iran will last for two consecutive weeks. The suspension supposedly followed Pakistan's efforts, he says, in dialogue with diplomatic efforts by such allies as the Iranian government to break open military contact with them.

Trump said the temporary stop would allow both sides to arrive at a fuller peace deal and safely reopen the Strait. He added that Iran’s peace offer provides a “workable basis” for discussions. Ship Attacks and Accounts of Secret Payments