Proposed Hormuz passage deal not feasible for shipping industry, sources say

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A proposed deal between Iran and Oman that aims to give Tehran control over ships entering the Gulf through the Strait of Hormuz is not easily workable due to US sanctions and restrictive insurance clauses on any payments, four industry sources tell Reuters.

Control of the strait has been the biggest sticking point in efforts to end the Middle East War.

Under the latest proposal, Tehran will be able to intervene if necessary with any inbound traffic, while outbound traffic would follow a route between Iran and Oman, with exit clearance granted through Oman after notifying Iran, a senior Iranian source has told Reuters this week.

The ability of merchant ships to navigate international waterways “safely, predictably and without unnecessary impediment is fundamental to resilient supply chains, economic stability and energy security,” the world’s leading shipping associations have said in an open letter this week.

Read more here.

(L to R) The Liberia-flagged container vessel MSC Tasman VI, the Singapore-flagged container vessel Wan Hai 353, and other ships are docked along a pier at the Khor Fakkan Container Terminal, the only natural deep-sea port in the region and one of the major container ports in Sharjah Emirate, along the Gulf of Oman on June 19, 2026. — AFP
(L to R) The Liberia-flagged container vessel MSC Tasman VI, the Singapore-flagged container vessel Wan Hai 353, and other ships are docked along a pier at the Khor Fakkan Container Terminal, the only natural deep-sea port in the region and one of the major container ports in Sharjah Emirate, along the Gulf of Oman on June 19, 2026. — AFP

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