The 14-point Memorandum of Understanding between Iran and the U.S. , as published by Al Arabiya English, contains several commitments by the U.S. and Iran relating to shipping and transit through the Strait of Hormuz.

Under the agreement, the U.S. will lift its naval blockade and help restore maritime traffic within 30 days. Iran, in turn, has committed to restoring traffic “proportional to the pre-war volume” and to facilitating the movement of merchant vessels to and from the Persian Gulf within the same period.

According to the text published by Al Arabiya, Washington has agreed to immediately lift Treasury Department sanctions on exports of Iranian crude oil, petroleum products and derivatives, along with related services such as banking, insurance and transportation.

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In practical terms, this would remove restrictions on tankers previously sanctioned for carrying Iranian oil and enable them to access international banking systems, insurance markets and credit facilities more easily.

Days before the MoU was signed, the U.S. carried out punitive strikes on vessels allegedly transporting Iranian oil, including two ships bound for India and crewed by Indian seafarers, three of whom were killed. Subsequently, U.S. Secretary of State Marco Rubio maintained that the transport of “illicit” Iranian oil would not be permitted. However, negotiations on sanctions relief had reportedly been nearing completion for several days. Before the conflict, international shipping through the Strait of Hormuz, a naturally occurring one, operated without tolls, service fees or any mandatory reporting to national authorities. Malacca-Singapore straits involve reporting to national authorities for the purpose of safe navigation but no fee, so is the Gibraltar.

In Bosphorus and Dardanelles, vessels pay service charges, including for pilotage to Turkey. In the artificial Suez and Panama canals, ships pay substantial transit fees, though alternative longer and more expensive routes remain available if those waterways are disrupted.

“Any fee to any authority for Strait of Hormuz would be vehemently opposed by global shipping for various reasons, including commercial ones,” said Capt. Ritesh Kumar, a veteran master mariner.

While the U.S. has indicated that no tolls should be imposed, Iran has signalled that it may seek to levy service charges. Iranian officials had also suggested that future arrangements could require ships transiting the Strait of Hormuz to report to Iran and/or Oman.