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Talks Near Deal to Open Narrow Hormuz Corridor as Iran Proposes Bans and Penalties

Iran’s draft to bar U.S. and Israeli ships is likely to block a usable reopening because it seeks fees and heavy fines.

Overview

  • Iran, Oman and U.S. officials say shipping-lane coordinates for a temporary, narrow corridor are close to finalizing after weeks of talks to partly reopen the Strait of Hormuz.
  • Tehran published a draft that would bar U.S. and Israeli vessels and allow fines up to 20% of cargo value while seeking transit fees, a proposal Washington publicly rejects.
  • Explosions and reported strikes near Qeshm Island on Thursday night kept commercial traffic at single-digit daily transits and prevented any immediate return to normal shipping.
  • Oil prices fell earlier in the week on hopes of a deal but then rose back into the low-$80s per barrel after Iran’s draft and the new security incidents, reflecting fragile market confidence.
  • Major practical hurdles — U.S. sanctions, restricted insurance and payment mechanics — mean an announced corridor could be legally or financially unusable, keeping fuel supplies and import-dependent economies at risk.