Hormuz Draft Agreement Stalls on Transit Fee Dispute

A draft agreement aimed at reopening the Strait of Hormuz has been reportedly finalized by Iranian and Omani negotiators, but it awaits approval from Iran's supreme leader. The proposed temporary arrangement would direct ships entering the Persian Gulf through waters controlled by Iran, while vessels leaving the Gulf would use a route administered by Oman.

The agreement would revive parts of the US-Iran memorandum reached in June, which collapsed after attacks on shipping resumed. However, transit fees remain a major obstacle, with Tehran seeking payments equivalent to between 5% and 7% of cargo value, while Oman has proposed a 3% charge.

President Donald Trump's administration has rejected any arrangement requiring ships to pay Iran for passage through what was an open international waterway before the war. The diplomatic push comes as traffic through Hormuz remains a fraction of normal levels, with only eight ships crossing the strait on Tuesday compared to roughly 130-140 daily transits before the US-Israeli war with Iran began on February 28.

Oil prices initially fell on expectations that an agreement could restore Gulf exports, but Brent crude recovered to around $80 per barrel as attacks on regional shipping continued. Meanwhile, the Houthis said they fired ballistic missiles at the Saudi tanker Wafa near the Red Sea port of Yanbu, while a separate Indian-flagged vessel sank off Yemen after being struck by an explosive-laden boat.