Iran has announced a 60-day waiver on transit fees for commercial vessels using the Strait of Hormuz, marking a significant development in the ongoing U.S.-Iran negotiations. According to Goodreturns, the Iranian Supreme National Security Council stated that the government would cover all costs linked to the transit process for two months, with the Persian Gulf Strait Authority directed to prioritise applications and issue vessel permits as quickly as operationally possible. The waiver does not amount to unrestricted passage, as commercial ships will still need approval from the Persian Gulf Strait Authority and must follow assigned transit corridors and schedules. Iran has also confirmed that mine-clearance activity in and around the waterway will continue under the understanding reached with Washington. This development comes alongside the 14-point Memorandum of Understanding signed by President Trump and Iranian officials that has reportedly reopened the critical shipping lane.
Gasoline prices have experienced a dramatic decline following the U.S.-Iran peace agreement that would reopen the Strait of Hormuz. According to GasBuddy, gas prices have eased in recent days, with the national average falling to $3.99 per gallon on Thursday, just days after the U.S. and Iran reached a tentative peace agreement. This represents a significant drop from the four-year high of $4.56 per gallon reached in late May, when consumers had been paying steep prices amid the Middle East conflict. However, experts predict that gas prices may not return to their winter levels anytime soon, as it could take time for the oil industry to rebuild supply chains and restore production after months of disruptions. The 60-day transit fee waiver announced by Iran provides additional market relief by reducing direct shipping costs and improving predictability for commercial vessels.
The United States has allowed a temporary easing of restrictions on Iranian oil trade, with the 60-day waiver aimed at improving supply conditions in the international market. According to Zee News, India, which is one of the world's largest energy importers, is expected to feel the effects mainly through changes in international prices rather than new Iranian shipments. India depends heavily on imports for crude oil, liquefied natural gas (LNG) and liquefied petroleum gas (LPG), being the world's third-largest oil importer, fourth-largest LNG importer and second-largest LPG importer. Until recently, around 45% of crude oil imports, 50% of LNG and nearly 90% of LPG shipments have traditionally passed through the Strait of Hormuz. As Energy Intelligence reports, Indian refiners, government officials and market analysts believe that this waiver will not lead to a large increase in Iranian crude purchases due to strong competition from other buyers and payment challenges. The main benefit for India is expected through softer international oil prices or better options for LPG imports.
Major shipping companies have introduced emergency fuel surcharges to offset the unprecedented cost increases. As reported by Investing.com India and Oilprice.com, A.P. Moller – Maersk introduced an Emergency Bunker Surcharge (EBS) as of March 25, citing notable fluctuations in fuel supply and additional distribution costs. Hapag-Lloyd implemented an Emergency Fuel Surcharge (EFS) across all trades, covering extraordinary costs not covered by the Marine Fuel Recovery Charge (MFR). According to Maersk's CEO Vincent Clerc, the cost impact of the energy shock is unprecedented both in terms of size, speed, and market dislocations. In early May, Clerc stated that the Hormuz energy shock represents approximately $500 million in extra cost per month that we must find a way to pass through. Hapag-Lloyd's CEO Rolf Habben Jansen confirmed that the conflict and energy price surge have translated into significantly higher costs hitting us, with additional costs of 50-60 million euros ($58-$70 million) every week.
As the 60-day transit fee waiver period approaches its end, Iran and Oman are preparing for a new phase of monetization. According to Khaleej Times, Iran and Oman agreed to maintain their dialogue on this issue through a joint working group to examine future fee structures. The countries insist they have jurisdiction over the Strait of Hormuz and stated they would examine the fees to be levied for services rendered in its administration. However, the United States is adamantly opposed Tehran's intention to charge what it refers to as maritime service fees rather than tolls for crossing the strait. Iran and Oman emphasised their 'sovereign rights over their territorial waters' in a joint statement, while Muscat's foreign ministry stated both countries were dedicated to 'toll-free safe passage'. This development suggests a potential transition from the current waiver period to a structured fee system, though the specific terms remain under negotiation.
