A proposed memorandum of understanding (MOU) between the United States and Iran, set for signing on June 19, leaves the future of transit fees in the Strait of Hormuz in doubt. While official reports focus on the restoration of shipping lanes within 30 days, conflicting statements from U.S. leadership and Iranian officials suggest a potential post-war shift in how the world’s most critical maritime chokepoint is managed and financed.
What does the proposed agreement say about transit?
The draft MOU, as reported by Bloomberg, mandates that Iran remove mines and restore merchant shipping to pre-war levels within 30 days of signing. However, the document lacks explicit language regarding tolls. U.S. President Donald Trump stated publicly that the agreement ensures the strait remains “toll-free,” mirroring pre-war conditions. This claim stands in direct contrast to reports from Iranian state media, such as Fars News, which cite sources claiming the final agreement acknowledges Iran’s right to collect “maritime navigation service fees.”
Why is the distinction between “tolls” and “service fees” important?
Iranian officials are increasingly precise with their terminology, distinguishing between illegal “tolls” (abarez) and legitimate “service costs” (hazine). Esmail Baghaei, spokesperson for the Iranian Ministry of Foreign Affairs, argued on May 25 that while Iran does not collect tolls, it provides essential safety services for vessels. He suggested that ships should expect to cover the costs of these services. This nuance suggests a potential compromise: while the U.S. may label the strait “free,” shipping companies could face new mandatory service charges enforced by Iran and Oman.
How long will the “free passage” period last?
Reports from Iranian outlets, including Tasnim News, indicate that the current MOU may only provide for a 60-day period of toll-free transit. This timeframe aligns with previous reporting from Axios, which noted that the initial agreement covers the duration of primary negotiations between Washington and Tehran. Analysts suggest this 60-day window serves as a diplomatic buffer, allowing both nations to defer the contentious issue of permanent maritime management while they finalize broader post-war terms.
Comparison: U.S. vs. Iranian Stance
| Source | Stance on Strait Fees |
|---|---|
| U.S. Administration | Maintains the strait will be “toll-free” and open. |
| Iranian Media/Officials | Claims rights to collect “service costs” and notes specific management rights for Iran and Oman. |
What happens after the initial 60-day window?
The long-term status of the strait remains uncertain. Given that Iran insists on sovereignty over its maritime rights, the most likely outcome is a transition from a “free” model to a “regulated” model. If Iran and Oman—the two nations bordering the strait—successfully argue that they hold the right to manage navigation services, transit could remain open but subject to administrative fees. This would mark a departure from the historical status quo and likely invite scrutiny from international maritime organizations.
Monitor official declarations from the Omani government in the coming weeks. As a co-manager of the strait’s navigation services, Oman’s interpretation of the MOU will likely signal whether “service costs” become a standard industry expense for international shipping firms.
Frequently Asked Questions
- Will ships be stopped in the Strait of Hormuz after the MOU?
The MOU requires the restoration of shipping within 30 days, but the legality of stopping ships for “service fees” remains a point of negotiation between Iran and the U.S. - What is the difference between an “abarez” and “hazine”?
In the context of Iranian policy, “abarez” refers to an arbitrary tax or toll, while “hazine” refers to a recoverable cost for services provided to ensure safe passage. - Does the U.S. recognize Iran’s right to charge for navigation?
The U.S. maintains the strait must be “toll-free.” The current conflict arises from Iran’s assertion that it is entitled to recoup service costs, a position the U.S. has not officially accepted.
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