• Iran has refused a US proposal to unlock frozen assets in exchange for dropping its demand for tolls on ships transiting the Strait of Hormuz.
  • Iran insists on controlling traffic and collecting transit fees, while Oman proposes a voluntary maritime fund as a compromise.
  • The standoff keeps global energy markets on edge, with shipping lines and insurers bracing for potential disruptions.

Strait Standoff

The United States has offered Iran access to billions in frozen funds if it drops its demand to charge ships passing through the Strait of Hormuz, according to people familiar with the matter. But Tehran has held firm, insisting on its right to control traffic and collect tolls as a matter of sovereignty.

Iran has formalized its toll regime, establishing an authority to approve transits and collect fees. While toll revenue could reach double-digit billions if traffic normalizes, current volumes remain volatile due to sanctions and security concerns. “Without a deal, we will enforce our sovereign rights,” an Iranian official said, speaking on condition of anonymity.

Oman’s Fund Proposal

Oman has floated an alternative: a voluntary maritime fund that would pool contributions from shippers and states to stabilize passage costs. The proposal is seen as a potential lubricant for negotiations, but Tehran has shown little interest, signaling that concessions on tolls would require broader diplomatic gains.

Shipping lines and insurers are watching closely. War-risk coverage has been revised upward, and some vessels are already rerouting around the Cape of Good Hope. “Every day of uncertainty adds to the risk premium,” a senior insurance executive said.

Market Implications

If the toll regime is enforced, Hormuz—a chokepoint for about 20% of global oil—could see higher costs and reduced traffic, potentially boosting oil prices and shipping rates. Gulf economies and maritime hubs face ripple effects. Talks continue, but without a breakthrough, the Strait remains a flashpoint.

Correction: An earlier version misstated the source of the US offer. It was made via backchannel diplomatic talks.