Proposed Hormuz passage deal not feasible for shipping industry, sources say

A proposed deal between Iran and Oman, granting Tehran control over ships entering the Gulf via the Strait of Hormuz, is deemed unfeasible by industry sources due to US sanctions and restrictive insurance clauses. The proposal would allow Iran to intervene with inbound traffic, while outbound traffic would clear through Oman after Iranian notification. Iran seeks 5-7% cargo fees, Oman around 3%, while the US opposes any fees. Shipping associations argue these fees are "a toll in all but name" and undermine international navigation laws. US sanctions on Iran's Persian Gulf Strait Authority mean any payments could lead to asset freezes. Furthermore, a new clause from the Lloyd's Market Association terminates insurance cover for vessels that pay transit fees, creating a "catch-22" for shipping companies.