Vance leaves shippers in the dark on potential Iran Hormuz toll

US VICE-PRESIDENT JD Vance skirted questions about whether Iran will one day be able to charge fees for vessels crossing the Strait of Hormuz, a critical concern for the oil and shipping industries as well as Gulf producers as the chokepoint opens up to traffic again.

The US and Iran on Wednesday (Jun 17) signed a memorandum of understanding that offers “safe passage of commercial vessels with no charge” for 60 days.

After that, it lays out a plan for a dialogue between Iran and Oman to define future administration and maritime service in the strait with other Persian Gulf nations.

The outcome is being closely watched by shipowners, Washington’s Gulf allies, and oil companies that have spent months arguing fees for transit through the Strait of Hormuz should not be tolerated. They’ve warned it would break with international maritime law and set a dangerous precedent that could be mirrored in other waterways.

President Donald Trump said on Tuesday that Hormuz will be toll free during the first 60 days and thereafter.

Asked on Thursday if the US would fight to fend off fees, Vance emphasised the US believes “international waterways should be free of tolls” but suggested the critical thing is to keep the waterway open. 

“The MOU contemplates that the Omanis, the Iranians, and the Gulf coast coalition together will figure out a proper security framework for the straits in the future,” Vance told reporters in a White House briefing, in an apparent reference to the Gulf Cooperation Council. 

“What I mean by that is that we don’t ever want this to happen again. But that’s not about tolling — that’s about ensuring that the straits are never used as a chokepoint for the global economy ever again,” Vance added.

The shipping industry and regional producers have been at pains to oppose tolls ever since Iran first suggested them. When asked in May about reported talks between Iran and Oman to impose fees in the strait, Trump said Oman would need to behave or the US would “have to blow them up.” 

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Charges, not tolls

A concern among several oil tanker owners is that Iran might try to disguise tolls as charges for services, something that could help Teheran earn revenues from transits without breaking any rules.

But US officials have indicated the issue of charges or tolls is not among key concerns as they enter 60 days of negotiations over Iran’s nuclear programme. 

Trump has repeatedly stressed that his primary goal has been ensuring Iran will never have a nuclear weapon, and talks expected to begin this weekend in Switzerland are focused on that issue. 

A senior US official told reporters on Wednesday that it’s also the US view that Iran’s Persian Gulf neighbours will never agree to tolls.

Earlier in the week, another senior administration official briefing reporters pointed to the possibility of a new regime to govern the strait after the 60-day talks. 

The goal is to create a mechanism that makes it impossible for Hormuz to be closed off again — and in a way that protects all of the different interests in the region, the senior administration official said.

However, the official added that there may be different ideas, including options preferred by regional stakeholders, and the US will consider those suggestions.

The International Chamber of Shipping, which represents more than 80 per cent of the world merchant fleet, said earlier this week that it wants to see a “permanent return to vessels being able to pass through the Strait of Hormuz unimpeded without paying a toll or other clearance mechanism.” BLOOMBERG