Iran floats insurance fees and asserts control over Hormuz

Iran is asserting control over the Strait of Hormuz by requiring ships to obtain its permission and mandatory insurance to transit. This move comes as the US reports 20 ships passed through overnight using a recommended route along Oman's coast. The conflicting signals create uncertainty for the shipping industry regarding the safety of this vital energy chokepoint. While Iran's current insurance requirement is free, the Persian Gulf Strait Authority's document suggests potential future charges and mandates adherence to a specific route along Iran's coast, prohibiting alternatives. This situation raises concerns among shippers and oil producers about the possibility of future tolls on the strait, despite a recent interim peace deal with the US that stipulated free transit for its 60-day term.

Normal shipping through the Strait of Hormuz will not resume for some time due to approximately 80 mines blocking the main route. While some vessels have begun exiting the Gulf following a US-Iran memorandum of understanding, the clearing of these mines is a significant obstacle. The mines, laid by Iran in the center of the strait, pose a navigational risk and have trapped thousands of seafarers. Alternative routes are dangerous, risking groundings and collisions, exacerbated by reported signal jamming. The shipping industry is concerned about potential disruptions and the legality of Iran's stated plans to charge fees for passage after an initial 60-day toll-free period.

Major shipowners have resumed transiting the Strait of Hormuz following a U.S.-Iran agreement, according to Lloyd’s List Intelligence. This marks the first movement of ships owned by major companies through the strait in 110 days, after they were effectively stranded since February. Vessels from Grimaldi Group, Cosco, Knutsen, and NYK have passed through, along with two sanctioned Iranian crude oil tankers. While the main central route remains closed due to mines, ships are utilizing the northern route through Iranian waters and the southern route through Omani waters, which are now reportedly open. This reopening is significant as the Strait of Hormuz is a crucial passage for global oil and natural gas, and its closure had caused an energy crisis.

Iran's Strait of Hormuz body announced it will waive planned fees for passage through the strait for 60 days, coinciding with a negotiation period under a memorandum of understanding with the United States. During this interim agreement, ships must submit transit requests at least 48 hours in advance. Iran will forgo fees for security, safety, environmental services, and related insurance, while requiring vessels to coordinate routes and transit times for safe navigation. This development follows a significant increase in commercial vessel crossings through the Strait of Hormuz, with 25 crossings recorded on Thursday, the highest since mid-April. The strait had been effectively closed by Iranian forces after strikes related to the war, leading to numerous reported attacks on ships in the region.