The US-Iran Deal: Why Shipping Through One Strait Matters So Much

This week, the US and Iran signed an agreement committing both sides to keep the Strait of Hormuz open and to finish final nuclear negotiations in 60 days. Iran will get immediate relief from US economic penalties and the ability to sell its oil. The ceasefire in Lebanon and other regions stays in place for those 60 days too.

But there is a serious problem buried in the details. Iran is claiming the right to charge ships a fee for passing through the strait—and that claim contradicts international law.

Why This Strait Matters

About one-fifth of the world's oil travels through the Strait of Hormuz, a narrow waterway between Iran and Oman. It is one of the most important shipping routes on Earth. When traffic slows or stops, prices for oil and fuel spike everywhere. Millions of people depend on stable prices at the pump and for heating.

The Fee Question

In early June, Iran said it would keep the strait open but charge a fee—set jointly with Oman—for ships to pass through. Days later, Iran's Foreign Ministry released a longer legal argument: the entire strait belongs to Iran and Oman's territorial waters (not international waters), so Iran can regulate ships and charge for the service, just like it can in its own ports.

This is where the conflict emerges. International maritime law—the rules countries follow for shipping—says coastal states cannot charge foreign ships for safe passage through a strait used by international trade. Iran is not officially bound by this treaty, but most countries treat the rule as binding custom anyway. The European Union warned in April that allowing Iran to charge would set a dangerous precedent for shipping routes everywhere.

Meanwhile, Iran has quietly begun building checkpoints on islands in the strait and making separate deals with neighboring countries. It is laying down the infrastructure for a fee system before anyone officially agrees to it.

The Real-World Delay

Shipping through Hormuz nearly stopped by April 9, even though a ceasefire was supposed to be in place. By mid-June, shipping companies said it would take weeks more to get back to normal. But Iran keeps saying the strait is open and traffic is not restricted. The gap between what Iran says and what shipping companies actually do shows that companies are making their own judgments about safety and risk—they do not simply trust government statements.

What Comes Next

The 60-day clock is supposed to produce a final nuclear deal, with the Hormuz rules and ceasefire as temporary stabilizers. But the fee question is not answered in the current agreement. It is postponed. The final deal will need to settle it clearly, or Iran will have already built the system and claimed the authority—turning what should be negotiated into a done deal.

About one billion people rely on oil and goods moving through this strait. If the 60 days produce a clear rule on who can charge what, shipping can normalize. If not, one of the world's most crucial waterways stays uncertain, and prices stay elevated.