Vice President JD Vance stated on Monday that he anticipates the U.S.-Iran deal will allow for toll-free passage through the Strait of Hormuz in the long term. However, shippers have expressed uncertainty regarding the specifics of the arrangement. Vance made these comments during an interview on CNBC's 'Squawk Box'.
According to Iranian state media, the Strait of Hormuz will be open for toll-free transits for an initial 60-day period, after which management will be handled by Iran and Oman, as reported by Iran's Tasnim news agency.
The U.S. and Iran are expected to finalize an agreement to resolve ongoing conflicts on Friday in Switzerland. President Donald Trump indicated that the deal would facilitate toll-free access to Hormuz in exchange for the U.S. lifting its naval blockade against Iran.
Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, and Foreign Minister Abbas Araghchi are expected to represent Iran during the negotiations, according to Vance.
Vance noted that ship traffic through Hormuz has increased in the past 24 hours, although Matt Smith, director of commodity research at ship-tracking firm Kpler, stated that there has not been a significant rise in transits or a mass departure from the Persian Gulf.
Lars Barstad, CEO of the oil tanker company Frontline, expressed optimism that vessels would begin to move quickly once a deal is finalized, although he indicated a desire for clearer language regarding transit protocols. Frontline operates a fleet of 80 ships, with five currently stranded in the Persian Gulf.
The global shipping trade group Bimco warned that the details surrounding the U.S.-Iran deal remain vague, lacking sufficient information on timing and safe navigation routes through Hormuz. Jakob Larsen, chief safety and security officer at Bimco, stated that the security situation for the shipping industry remains volatile and risky due to a history of overly optimistic reassurances.
Concerns about mines in Hormuz persist, with Secretary of State Marco Rubio informing Congress earlier this month that Iran had mined significant portions of the strait. Niels Rasmussen, Bimco's chief shipping analyst, indicated that it may take several weeks for the hundreds of ships currently trapped in the Persian Gulf to exit through Hormuz. He noted that while there has been an increase in ship transits, there is no evidence that the announcement of an agreement has yet altered the situation.