The Strait of Hormuz is reopening under a new security framework, but the cost of passage is being renegotiated — and European powers are quietly accepting that free transit may no longer be free.
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UK, France join Oman to secure Strait of Hormuz as oil flows reach 10M bpd
France and the United Kingdom have reached an agreement with Oman to restore safe transit through the Strait of Hormuz, a joint statement from President Emmanuel Macron and Prime Minister Keir Starmer said Friday, as commercial shipping through the waterway recovers to more than 10 million barrels per day following an interim US-Iran peace deal.
"The Strait of Hormuz is a vital artery for the global economy. Restoring safe transit for ships of all nations through the Strait is a matter of global concern," the two leaders said, adding that they are ready to deploy a broader multinational military mission to support freedom of navigation. The joint effort will focus on ensuring Oman's "sovereign territorial waters are safe for navigation," according to the statement.
The announcement follows a meeting Thursday between Starmer and Oman's Sultan Haitham bin Tariq in London, where the two leaders discussed reassuring the shipping industry about safety through the chokepoint. Starmer emphasized that Oman's support is vital and expressed gratitude for Omani mediation that contributed to the recently signed US-Iran Memorandum of Understanding, which triggered a 60-day negotiating period to resolve issues including Iran's nuclear program and billions of dollars in frozen funds.
The Strait of Hormuz handled about a fifth of the world's oil and liquefied natural gas supplies before the conflict erupted in late February, when Iran effectively shut the waterway at the start of the US and Israeli bombardment and the US blockaded Iran's ports in response. That triggered a surge in energy prices and supply shortages. Since the interim deal roughly two weeks ago, oil flows from Gulf producers including Saudi Arabia have recovered to more than 10 million barrels per day — slightly more than half pre-war levels — while Iran has boosted its crude exports after the US lifted its blockade.
The Price of Passage
Behind the military cooperation, a parallel negotiation is reshaping the economics of the waterway. Some leading European powers now accept that ships transiting the strait will have to pay fees to Iran and Oman, according to people familiar with the matter, who described the prospect of some sort of service fee as a given. Privately, some Gulf Arab officials hold the same view, though this is not necessarily the formal position of their governments.
Oman has told European officials there is no way of going back to the pre-war status quo, Bloomberg reported last week. The sultanate, which borders the southern part of the strait and is an ally of both the West and Iran, is studying the Malacca strait in Asia as a potential model — a system loosely managed between Indonesia, Malaysia and Singapore, where vessels are charged for navigation and security services through a fund that collects voluntary contributions. In 2017, Singapore disclosed that $22 million had been raised over a 10-year period, or roughly $2.2 million per year.
The US and Gulf Arab countries continue to insist that Iran and Oman cannot impose charges of any kind, citing international maritime law and the risk of creating a precedent for other waterways. Bahrain's government said in a statement it "had not accepted or even indicated acceptance of any fees or tolls on vessels transiting the strait," adding that "the free and unimpeded passage of international shipping through the strait is a matter of international law, not a matter for negotiation."
European countries have pressed Iranian and Omani officials not to discriminate against ships based on their nationality, the people said. The UK, France and other European nations are also pushing for an international maritime coalition to help clear mines in Hormuz, though its deployment will depend on progress in negotiations over a permanent peace deal.
Diplomatic Crosscurrents
The discussions over the strait's future management come as US negotiators Steve Witkoff and Jared Kushner traveled to Doha this week for indirect talks between Washington and Tehran, seeking to build on the interim deal. Those efforts faced a rocky start after a series of clashes over Hormuz late last week. US President Donald Trump said Wednesday that negotiators had made progress, saying "we're getting along very well."
The last time a major chokepoint faced sustained disruption — the 2019 attacks on Saudi Aramco's Abqaiq and Khurais facilities — oil prices spiked 15 percent in a single day, though the impact faded within weeks as supply was restored. The current situation involves a broader set of stakeholders and a more complex negotiation over long-term governance, suggesting any resolution may take longer to crystallize.
In a rare visit to Europe last week, Sultan Haitham bin Tarik mentioned plans for the Strait of Hormuz in a meeting with Macron in Paris, where the two leaders said in a joint declaration that they would promote restriction-free transit — a statement that now appears at odds with the emerging fee discussions.
This article is for informational purposes only and does not constitute investment advice.
[1] UK and France will cooperate with Oman to ensure navigational safety in its territorial waters[2] France, UK agree to work with Oman to restore safe transit through Strait of Hormuz - The Jerusalem Post[3] European nations now believe some Hormuz fees are inevitable[4] European nations now believe some Strait of Hormuz fees are inevitable[5] European Nations Now Believe Some Hormuz Fees Are Inevitable
