Iran Waives Strait Of Hormuz Transit Fees During 60-Day Negotiation Period
Tehran, Iran: The Islamic Republic of Iran on Friday, June 19 announced that it has decided to wave the planned Strait of Hormuz transit fees during a 60-day negotiation period under the memorandum of understanding signed with the the US this week, said Iran’s Personal Gulf Strait Authority (PGSA).
Ships seeking passage through the strait while the interim agreement is in force must submit transit requests at least 48 hours before arrival, news agency Routers reported citing PGSA.
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The waves is aimed at ensuring safe and secure vessel passage and environmental services and related insurance during the period. Notably, the ships need to coordinate routes and transit times in advance due to areas affected by mines and to ensure safe navigation.
Under the temporary deal between Iran and the US, ships seeking to pass through the Strait of Hormuz must submit transit requests at least 48 hours before arrival. By removing the planned fees, Iran appears to be seeking to ensure uninterrupted shipping traffic and support the ongoing diplomatic process with Washington.
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One of the world’s key energy chokepoints, Strait of Hormuz witnesses fifth of global oil shipments passing through the narrow waterway connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. The disruption in the route significantly affected global oil prices and energy markets.
