Strait of Hormuz Toll-Free for 60 Days; Key Questions Arise from Point 5 of US-Iran MoU

New Delhi. Detailed information regarding the Memorandum of Understanding (MoU) signed by leaders of the US and Iran to end hostilities has now been released by the American side. The agreement includes key provisions such as reopening the Strait of Hormuz, easing certain economic sanctions on Iran, and holding further talks on the nuclear issue.

The MoU comprises 14 points in total, with the fifth point considered the most significant. It clarifies that, for the time being, no toll will be levied on commercial vessels passing through the Strait of Hormuz, although the possibility of a toll system in the future has not been entirely ruled out.

What does the fifth point say?
According to the fifth point of the MoU, following the signing of the agreement, Iran will ensure that commercial vessels traveling between the Persian Gulf and the Sea of ​​Oman can move safely without paying any tolls for the next 60 days.

It also states that vessel movement will commence immediately, though it may take Iran approximately 30 days to clear technical obstacles and remove landmines (or sea mines) present along the route.

Furthermore, the point mentions that Iran will hold talks with Oman regarding the future management of the Strait of Hormuz. Discussions will also be held with other nations bordering the Persian Gulf. This entire process will be determined with due regard for international law and the sovereign rights of coastal states.

What does this mean?
The Strait of Hormuz is a vital global maritime route, through which approximately 20% of the world’s crude oil passes. Its closure during the recent conflict had impacted international oil supplies. The interpretation of the fifth point of the MoU is that the process of removing maritime route obstructions will be completed within the next 30 days, while toll-free movement will be ensured for 60 days. Subsequently, a permanent management arrangement could be finalized in collaboration with Oman and other coastal nations, leaving open the possibility of implementing a toll system in the future.