The Strait of Hormuz has reopened, but is Iran charging fees, and can tankers be found?

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The Strait of Hormuz has reopened after months of blockade, but it has not immediately brought the kind of unimpeded flow the markets expected. Ambiguous statements from U.S. officials regarding transit fees after 60 days have left the shipping industry uneasy; meanwhile, large Asian refiners are already facing a "can't find a ship" dilemma, with some buyers even declaring force majeure.

According to Xinhua News Agency, the Prime Minister of Pakistan said Iran will immediately reopen the Strait of Hormuz and the U.S. will immediately lift the maritime blockade. As of Thursday, June 18, at least 14 vessel transits have been recorded through the Strait of Hormuz — compared to only 2 on the same day last week.

However, the memorandum also stipulates that after 60 days, Iran will negotiate with Oman and other Gulf countries regarding the "future management and maritime services" of the Strait. U.S. Vice President JD Vance emphasized at the White House media briefing on Thursday that international waterways "should be toll-free," but when pressed on whether the U.S. would firmly oppose fees, he shifted focus to ensuring the Strait never again becomes a chokepoint for the global economy, clearly avoiding any direct commitment on future fees.

The impact of the news on the market has already manifested rapidly in the supply chain. According to Reuters, Indian Oil failed to charter a VLCC (Very Large Crude Carrier) to load Iraqi Basra crude in late June; Indian Oil subsequently declared force majeure for the related cargo. Kpler data shows at least 550 vessels are still stranded in the Gulf, including more than 200 oil and product tankers.

Fees After 60 Days? Vance Leaves Uncertainty

The wording on "maritime services" in the agreement text has become the biggest concern for the shipping industry and oil-producing countries.

According to the Financial Times, Iran's official news agency ISNA stated clearly on Thursday that the term "maritime services" also involves fee collection, and Iran will negotiate with Oman to establish the future management of the Strait. Iran's Supreme National Security Council issued a statement saying the "Persian Gulf Strait Management Authority" has been instructed to prioritize transit applications during the 60-day transitional period, no fees will be collected, and minesweeping will proceed—but it also pointed out there are "several security concerns" in the Strait, and ships must follow designated routes and schedules.

John Staw pert, maritime director at the International Chamber of Shipping, representing over 80% of the world's merchant fleet, said the "maritime services" wording suggests a mechanism similar to the Strait of Malacca might be established in the future. He explained that the Malacca fund is a voluntary environmental protection and navigation aid fund paid by nations, not by the industry. "Hormuz has never had such a mechanism before, and the sudden proposal is puzzling."

Phillip Belcher, maritime director at the International Tanker Owners Association (Intertanko), took a tougher stance, demanding that negotiations result in "reinforcing the core principle of toll-free transit through the Strait of Hormuz."

Multiple senior U.S. officials have downplayed the urgency of the fee issue, saying it is not the key topic in the current 60-day nuclear negotiations. Trump has repeatedly stressed that his primary goal is to ensure Iran never acquires nuclear weapons, and the talks expected to start this weekend in Switzerland will focus on this. One senior U.S. official said Iran's Gulf neighbors would not agree to fees; another noted that after 60 days, a new governance mechanism for the Strait may emerge, aiming to create a system making Hormuz "never again subject to blockade" while balancing all interests—but also admitted local stakeholders might propose their preferred solutions, which the U.S. would consider.

Asian Refiners Face "No Ships to Charter"

Even though the Strait officially reopened on Friday, the imbalance of tanker supply and demand has already substantively blocked crude flows.

Reportedly, PetroChina sought to charter a VLCC (capacity up to 2 million barrels) to load crude at Basra oil terminal between June 25 and 30, receiving at least six quotes, with freight rates equivalent to 650 to 750 points on the Worldscale index, nearly double the normal rate before the Iran war (late February this year).

"There are ships available, but the problem is they are too expensive, and there is no guarantee of smooth passage through the Strait," an official said.

Another major state-owned energy company was also seeking a VLCC to load in the Gulf and ship to Asia from June 20 to 30, but whether it can succeed is unclear. In last week's tender, Indian Oil sought to charter a VLCC between June 22 and 23 from Iraq to the Indian port of Paradip but received no quotes, then declared force majeure.

Some ships have already made moves. Several vessels, including oil tankers under COSCO Shipping and an Italian car carrier, began transiting the Strait on Thursday. Other shipping companies reported updating risk assessments, cleaning hulls, and preparing to depart.

Industry insiders point out that high freight rates and security concerns are not the only obstacles. "Even if rate issues are resolved, chartering is still difficult. Both sides may need to introduce special clauses on Strait transit in the contracts," one source said.

The Role of Gulf Oil Producers and Oman

Competition over the future governance framework for Hormuz has pushed Gulf oil producers and Oman into the spotlight, exposing divisions.

Saudi Arabia and the United Arab Emirates are strongly opposed to any form of fee, insisting that Hormuz's status as an international waterway is unquestionable. Oman occupies a delicate position—its territorial waters cover the west side of the Strait, which has previously unsettled some Gulf states and the U.S. Trump warned Oman last month to "learn to follow the rules, or we’ll have to bomb them."

A source familiar with the negotiations told the Financial Times that Oman has never considered transit fees, and its commitment to international law and freedom of navigation is "unwavering," but it is studying the possibility of charging legitimate fees for future maritime services, including environmental protection, navigation management, pilotage, and security.

In addition, Iran is not a signatory to the UN Law of the Sea convention, making its claims under the international maritime legal framework more complicated. The current outlook for negotiations is full of uncertainties, and how to balance all interests will be the core issue the market will focus on in the next 60 days.

Risk Notification and DisclaimerThe market is risky, and investments require caution. This article does not constitute personal investment advice and does not consider the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. Investing accordingly is at your own risk. ```