Iran, Oman Allowed to Levy Hormuz Transit Fee Under 2-Week Ceasefire Deal

Tehran: The two-week ceasefire announced after 40 days of tension between America and Iran has brought relief, but with it a new economic and strategic issue has also come to the fore. The temporary agreement includes a provision under which Iran and Oman can collect transit fees from ships passing through the Strait of Hormuz. This is the same route through which about 20 percent of the world's oil supply passes.

Why is the Strait of Hormuz so important?

The Strait of Hormuz is a very narrow sea route connecting the Persian Gulf to the Indian Ocean, whose width is about 34 kilometers. This area falls within the territorial waters of Iran and Oman and has long been considered an international waterway. Till now no toll was imposed on ships passing through here, due to which global trade continued smoothly.

Why was the transit fee proposal brought?

Iranian officials say the recent conflict has caused significant damage to the country's infrastructure. There has been huge damage from defense establishments to civilian facilities. In such a situation, the amount received from the proposed transit fee can be used for reconstruction. Iran also claims that this step is not being taken to disrupt trade, but to organize it.

Will the waterways reopen after the ceasefire?

Under the ceasefire, Iran has agreed to reopen the Strait of Hormuz conditionally. In fact, during the conflict that started on February 28, there were attacks on ships on this route, due to which this route was almost closed. This had a direct impact on the global oil market and a sharp rise in prices was seen.

What will be the main issues in further talks?

During this temporary peace, further talks are also going to begin. Detailed discussions on this issue between the US and Israel are likely to take place in Pakistan's capital Islamabad. In this, issues like the future of the Strait of Hormuz, regional security and long-term peace will be prominent.

Does international law allow this?

Under the law of the sea, particularly the UN's UNCLOS rules, no country is allowed to charge fees merely for granting passage. However, limited fees may be charged for special services such as piloting or port services, but this should also be the same for all countries. In such a situation, the proposal of Iran and Oman may give rise to a legal debate.

What is the reaction of Gulf countries to this?

Gulf countries like UAE and Qatar have expressed concern over this proposal. They say that any kind of duty on this important sea route could affect global trade. These countries have clearly said that the waterways should remain completely open and uninterrupted, and decisions on any economic arrangement should not be taken in haste.