Hormuz Strait to reopen after four months; US-Iran differ on 'toll-free' interpretation

The Strait of Hormuz, a vital waterway that has been effectively blocked for over 100 days, is poised for a gradual reopening following a preliminary memorandum of understanding (MOU) between the United States and Iran aimed at ending their conflict. However, significant differences in interpretation, particularly regarding the "toll-free opening" championed by U.S. President Donald Trump, cast a shadow over the prospect of complete resolution.

President Trump declared on social media that the agreement "fully approves the toll-free opening of the Strait of Hormuz," later telling The New York Times that the strait would be "permanently toll-free." This aligns with his long-standing advocacy for freedom of navigation. Yet, reports from sources familiar with the negotiations suggest that the toll-free provision applies only for the 60-day duration of the ceasefire, with future management of the strait to be determined through further dialogue among regional nations.

Iran's stance also diverges from the U.S. vision of an unrestricted passage. An Iranian negotiator, speaking to the semi-official Mehr news agency, stated that Iran and Oman currently provide safety, navigation, and security services in the Strait of Hormuz and collect fees for these services. "This right belongs entirely to Iran and Oman, and no other party has the authority to intervene," the negotiator asserted, adding that "this system will be maintained regardless of any agreement."

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The Strait of Hormuz will be permanently toll-free.

This suggests Iran's intention to continue collecting fees, albeit potentially under the guise of "service charges" rather than "tolls," to cover operational costs. While Article 26 of the UN Convention on the Law of the Sea prohibits coastal states from charging fees for mere passage through territorial waters, it allows for charges for specific services provided. This distinction could allow Iran to levy fees without directly contradicting Trump's "toll-free" claim, while still recouping its expenses.

The reopening is also not immediate or absolute. President Trump indicated that the strait would open for demining purposes starting Friday, June 19. Financial Times, citing sources close to the agreement, reported that Iran's military would undertake demining operations for the first 30 days, during which passage would be gradually normalized. This phased approach implies that commercial traffic will not immediately resume full operations.

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Iran is currently collecting fees for safety, navigation, and security services in the Strait of Hormuz. This right belongs entirely to Iran and Oman, and no other party has the authority to intervene. This system will be maintained regardless of any agreement.