Weekend - Iran to offer China special Hormuz fee terms, envoy says amid strait talks

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The prospect of nationality-based fee arrangements adds a new layer of uncertainty to an already fragile reopening of the strait, with the free-transit window under the initial US-Iran deal due to expire and no clarity yet on what replaces it. Any perception that Iran and Oman intend to discriminate by flag or origin risks reigniting the standoff with Washington and Gulf Arab states, who reject the principle of charges altogether, while European acceptance of some fee structure could create a split among Western positions. The continued turning back of vessels attempting to exit the Gulf underscores that shippers remain wary, a dynamic likely to keep a risk premium in tanker rates even as headline oil prices have eased.Iran's envoy to China said Tehran will grant Beijing and other friendly nations special treatment on new Hormuz service fees, as talks with the US and Oman continue over the strait's permanent post-war arrangements.Summary:Iran's ambassador to China, Abdolreza Rahmani Fazli, said Beijing and other friendly nations would receive special consideration on new Hormuz service feesFazli said the arrangements would be developed in collaboration with Oman and treated as a matter of national security following the four-month US-Israel war on IranHe described the fees as covering security of passage, vessel supervision and environmental impact, insisting they would not amount to a tollAn initial US-Iran deal stipulated free transit through the strait for 60 days, with no clarity yet on arrangements after that periodThe US and Gulf Arab states reject any charges on the waterway, while some European nations have signalled acceptance of a fee provided it is not applied on a discriminatory basisAt least eight ships attempting to leave the Persian Gulf along the Omani coast turned back between July 3 and July 4Iran's ambassador to China said Tehran will extend special treatment to Beijing and other friendly nations when it sets fees for ships transiting the Strait of Hormuz, as negotiations continue over the long-term management of the waterway following the recent war with the United States and Israel.Speaking at the World Peace Forum in Beijing on July 4, Abdolreza Rahmani Fazli said the strait had become a matter of national security for Iran in the aftermath of the four-month conflict and that new arrangements were being developed in collaboration with Oman. He said the fees would fund security of passage, supervision of vessel traffic and management of the environmental impact of shipping through the corridor, and rejected characterising them as a toll. Friendly countries, he said, would receive preferential terms, though he did not specify what form those concessions might take.The remarks add a new dimension to talks aimed at securing a permanent settlement of the conflict, which forced Iran to effectively close the strait when US and Israeli air strikes began in late February. Traffic through the waterway, which normally carries about a fifth of the world's crude oil and liquefied natural gas, has only recently begun to recover following an interim deal reached in June. That agreement reportedly guaranteed free transit for commercial vessels for 60 days, but it remains unclear what arrangement will take its place once that window closes.The question of fees has already become a point of friction. The United States and Gulf Arab states maintain that neither Iran nor Oman has the right to impose any charges on ships using the strait, while some European governments have indicated a willingness to accept a fee structure provided it does not discriminate against vessels based on nationality. The practical difficulty of reopening the route was underscored by at least eight ships attempting to leave the Persian Gulf along the Omani coast that turned back between July 3 and July 4, a sign that normalising traffic through the chokepoint remains a fraught and unresolved process even as broader negotiations continue. This article was written by Eamonn Sheridan at investinglive.com.