Iran-Oman Hormuz Deal Stumbles Over U.S. Sanctions and Insurance Rules

Iran and Oman have been negotiating a plan that would give Tehran control over ships entering the Gulf through the Strait of Hormuz, while outbound traffic would be routed under Omani coordination. Iran seeks a transit fee of 5%‑7% of cargo value, Oman is discussing around 3%, and the United States opposes any fees.

U.S. sanctions on the Persian Gulf Strait Authority and restrictive war‑risk insurance clauses introduced by the Lloyd’s Market Association create major compliance hurdles. Insurers may terminate coverage if a vessel pays a transit fee, and payments could trigger asset freezes under U.S. sanctions. Shipping companies and oil traders say the arrangement is not workable without risking sanctions violations or loss of insurance.

The strait carries roughly one‑fifth of global oil supplies, making the dispute a key issue for energy security, supply‑chain stability, and international maritime law. The International Maritime Organization declined to comment on the proposal.