In its 10-point proposal for ceasefire, Iran had a provision that demanded a transit fee for both Iran and Oman on all the ships passing through the Strait of Hormuz. Oman refuted Iran’s demand by saying that “No tolls can be imposed for crossing Hormuz.”
The Sultanate has signed agreements which guarantees that there will be no transit fees for any ship that passes through the Strait of Hormuz, says Oman’s Transport Minister. The minister also highlighted that Oman is committed to ensure free and safe passage to all ships through the Strait of Hormuz.
Iran Claims Transit Fees Were For Post-War Reconstruction
Iran included the transit fee demand in its 10-point proposal for ceasefire. They say that the fee was for rebuilding the country as it faced massive losses during the war.
The war has led to massive destruction in the country from government administration to civilian infrastructure, the transit fee will act as a compensation to the post war recovery process.
Transit fees vary based on vessel type, cargo, and other factors. Iran is preparing a protocol with Oman that makes transit easier rather than restricting it, says Iran’s Deputy Foreign Minister Kazem Gharibabadi, reported by Reuters.
However, Oman’s rejection of the proposal has weakened it, the Strait of Hormuz is bordered by both Iran and Oman and governed by international maritime laws.
Gulf countries like the UAE and Qatar also opposed the introduction of such fees and proposed free passage suggesting that financial discussions should be postponed.
Key Factors Of The US-Iran Ceasefire
Both Iran and the US agreed to a ceasefire to end the 40-day long conflict. Tehran has agreed to reopen the Strait of Hormuz, which had been closed since the war began on 28 February. The closure that had led to an increase in global oil prices.
US President, Donald Trump says, Iran’s 10-point proposal for ceasefire are workable but not enough.
He is hopeful of reaching a final conclusion to the negotiations in the two-week break in fighting, without mentioning what they are discussing.
