Vice President JD Vance stated that the United States expects the Strait of Hormuz to be open and toll-free for the long term as part of an anticipated U.S.-Iran agreement, though shipping industry representatives say the specifics of the arrangement remain unclear [1]. Vance told CNBC that technical negotiations are ongoing to finalize the details, and he noted that ship traffic through the strait has already increased in the past 24 hours, though CNBC could not independently verify this claim [1].
According to Iranian state media, the Strait of Hormuz will be open to toll-free transits for a 60-day period, after which management will be handed to Iran and Oman, as reported by Iran's Tasnim news agency [1]. The U.S. and Iran are expected to sign the agreement to end the conflict on Friday in Switzerland, with President Donald Trump stating that the deal will open Hormuz without tolls in exchange for the U.S. ending its naval blockade against Iran [1].
Industry reactions are mixed. Lars Barstad, CEO of oil tanker company Frontline, expressed optimism that vessels will begin moving quickly once the deal is signed but voiced concerns about the lack of clarity in the transit protocol, hoping for more details in the coming days [1]. Frontline, which operates 80 ships globally, currently has five tankers stuck in the Persian Gulf [1]. The global shipping trade group BIMCO, however, cautioned that statements from both the U.S. and Iran lack sufficient information on timing and safe routes, warning that the security situation remains volatile and risky for ships to commence transits at this point [1].
Security concerns persist, particularly regarding the threat of mines in the Strait of Hormuz. Jakob Larsen, BIMCO's chief safety and security officer, highlighted the ongoing risk and referenced Secretary of State Marco Rubio's earlier testimony to Congress that Iran had mined large segments of the strait [1].
CONCLUSION
While the anticipated U.S.-Iran deal could reopen the Strait of Hormuz toll-free and potentially ease shipping disruptions, significant uncertainty and security risks remain. Industry leaders and trade groups urge caution, citing unclear protocols and ongoing threats in the region. The market is closely watching for further details and the formal signing of the agreement.