Iran and Oman to levy shipping fees in Hormuz during 2-week ceasefire: Report

The funds will be used for the reconstruction purpose, as per the report. However, the foreign ministry of Oman is yet to issue any statement regarding the same.

Iran and Oman are planning to charge transit fees for vessels passing via Strait of Hormuz during the two-week ceasefire, as per the Iran's semi-official Tasnim News Agency.

The funds will be used for the reconstruction purpose, as per the report. However, the foreign ministry of Oman is yet to issue any statement regarding the same.

The strait has effectively remained shut since the war began, with maritime tracking data indicating that only around 5% of pre-war shipping traffic is getting through. A few tankers have managed to pass, for example, Pakistan and India have negotiated with Iran to secure safe passage for some of their flagged vessels.

Iran is also reported to be charging as much as $2 million per vessel for transit through the Strait of Hormuz, though it remains unclear whether any ship operators have actually paid the fee.

The Strait of Hormuz is a narrow waterway situated at the mouth of the Persian Gulf, bordered by Iran to the north and Oman (along with a portion of the United Arab Emirates) to the south. It connects the Persian Gulf to the Gulf of Oman and ultimately the Arabian Sea, serving as the only sea passage from the oil-rich Persian Gulf to the open ocean. At its narrowest point, the strait is only about 21 miles (33 kilometers) wide, making it a geographic chokepoint. It's often described as a "critical oil chokepoint."

The ceasefire has been proposed to bring an end to the 40-day conflict that began on February 28. As part of the arrangement, Tehran has conditionally agreed to reopen the strait, which had largely remained shut during the hostilities, with attacks on vessels disrupting transit and driving up global oil prices.

According to Reuters, the proposed fee structure would differ based on the type of vessel, its cargo, and other prevailing conditions.

More talks on the future of this vital strait along with other aspects of a long-term settlement are likely to take place between the United States and Israel, which is scheduled to start in Islamabad on April 10. 

The United Araba Emirates, Qatar and other Gulf countries are opposing any step to levy transit fees, voicing for the restoration of free navigation and saying that maintaining that any discussions on financial arrangements should come only after the waterway is reopened.

Earlier today, President Donald Trump has announced a two-week halt of US strikes on Iran, after Pakistan's diplomatic efforts. The announcement followed Trump's previous warning to attack Iran's bridges, power plants and other infrastructure if it fails to open Hormuz by Tuesday evening.  

“Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump wrote on Truth Social.

While describing the ceasefire as "double sided", Trump said the US had already “met and exceeded all Military objectives.” He also said Iran's 10-point plan provides “workable basis” for negotiations.