Although negotiations to end the ongoing war between the US and Iran are far from over, both countries took a firm step forward to end the conflict recently by signing a memorandum of understanding (MoU) digitally. Consequently, the interim peace deal with clauses pertaining to the reopening of the Strait of Hormuz and more has since gone into effect.
However, the big question surrounding Iran potentially charging extra fees from ships passing through the waterway still remains a big issue.
What did JD Vance say?
As the clock has started ticking on the 60-day negotiation period for a final peace deal between the two sides, US Vice President JD Vance further spoke out against concerns about Iran imposing tolls on traffic passing through the crucial chokepoint. On Thursday, he told reporters at the White House, “Well, first of all, we believe international waterways should be free of tolls.” He further insisted that regional partners would together “figure out a proper security framework for the straits in the future.”
Vance also issued a blunt warning to Iran, asserting “there’s not going to be a final deal” if the strait remains unopened.
In the aftermath of the 14-point MoU, the US and Iran were expected to go to Switzerland for “technical negotiations,” according to US Vice President JD Vance. As the timeline for the next round of talks remains unclear, the top US official also pointed out that those plans “could change.”
Although official confirmations are awaited, a recent CNN report citing a spokesperson suggested that Vance had cancelled the planned trip to Switzerland, saying that logistics were “never simple or predictable.”
ANI further quoted a White House spokesperson’s confirmation that Vance was not departing for Switzerland as plans for the talks have yet to be finalised.
“As the Vice President said at his press conference, the plans for the upcoming technical talks have not been finalised, and the US delegation has been prepared to depart at the first available opportunity. But the logistics of these negotiations have never been simple or predictable,” the spokesperson said. “As of now, the Vice President is not departing tonight. We will let you know as soon as we have a concrete update about next steps. We look forward to beginning technical talks as soon as possible.”
Meanwhile, “nothing has been confirmed” about the Iranian presence for this proposed trip, according to the country’s Tasnim agency. On the other hand, a report from pan-Arab satellite channel allied with Lebanese militant group Hezbollah, Al-Mayadeen, suggested that Iran was also postponing talks in Switzerland over Israel’s ongoing military campaign in Lebanon.
US lifts Iran ports blockade
On Thursday, the US Central Command announced that it had lifted the blockade on traffic moving between Iranian ports and coastal areas.
“American forces are not impeding the transit of vessels to or from Iranian ports on the Arabian Gulf and Gulf of Oman,” the command said in a social media post.
Meanwhile, Iran said that commercial vessel traffic at southern ports had returned to normal since Monday, according to the semi-official Iranian Students’ News Agency.
According to data from the global trade intelligence firm Kpler, three supertankers from Saudi Arabia, carrying 6 million barrels of oil, crossed the Strait of Hormuz on Thursday. The tankers switched their transponders on in the Gulf of Oman after going into hiding for more than two months.
Vance cited similar figures tied to the resumption of Hormuz traffic, telling reporters that more than 12 million barrels of oil passed through the channel overnight.
However, Matt Smith, director of commodity research at Kpler, signalled that shippers were still hesitant to cross the strait. “The floodgates haven’t opened, there is no mass exodus as yet,” he said, as quoted by CNBC.
Before the Iran war began, more than 100 ships, including dozens of tankers, crossed the strait daily. As reported by CNBC, the Hormuz Strait facilitated the passage of around 14 million barrels per day of oil and 6 million barrels per day of refined products in a pre-war reality.
Strait of Hormuz reopening: What are other officials saying?
Releasing the 14-point MoU document to the world on Wednesday, US President Donald Trump announced on Truth Social that “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorise the toll free opening of the Strait of Hormuz, and simultaneously herewith, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
In a subsequent interview with Axios, Trump reiterated that global oil pressures were the primary factor driving his decision to push for a deal. “We wouldn’t have oil for months. As long as you’re dropping bombs, that thing is automatically closed,” he said about the critical waterway. The POTUS issued a warning of his own, saying that the strait remaining closed “is the kind of thing that could cause a worldwide depression.”
The fifth pointer in the official text of the ‘Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran’ also stated, “Upon the signing of this MOU, the Islamic Republic of Iran will make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only from the Persian Gulf to the Sea of Oman and vice versa.
“The traffic of commercial vessels will immediately start, and considering the need for removing the technical and military obstacles and demining by the Islamic Republic of Iran, will be instated within 30 days. The Islamic Republic of Iran will conduct dialogue with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz, in discussion with other Persian Gulf littoral states in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz.”
Will Iran impose Hormuz Strait fees?
Even as Trump declared that the strait would open again “permanently toll-free,” Iran said on Monday that it had plans to charge “fees.” Iran’s foreign ministry spokesman, Esmaeil Baghaei, indicated that Iran was “not seeking to levy transit tolls; however, fees will be charged in exchange for the services that are provided.”
Iran’s chief negotiator Mohammad Bagher Ghalibaf also reiterated the claims in an interview aired on Iranian state TV. “We have responsibility and sovereignty over there. Naturally, there are services there and in return, there is a fee for this work,” he said, highlighting that the country has authority in certain parts of the Strait of Hormuz.