The on-again-off-again US-Iranian war may be off-again, with Iran reportedly close to a new arrangement with Oman to manage shipping through the Strait of Hormuz. Iran seeks to charge insurance fees for passage, but this raises legal questions under the concept of innocent passage in international maritime law. However, the UN Convention on the Law of the Sea has not been ratified by either the United States or Iran, potentially making this moot.

JPMorgan notes that countries like Denmark and Turkey already charge vessels for services when transiting territorial waters. Denmark requires mandatory pilotage for vessels carrying hazardous cargo or over 5,000 metric tons of bunker oil, costing $10-25k per transit. Turkey charges a Suezmax oil tanker approximately $130,000 for a round-trip passage through the Turkish Straits under the 1936 Montreux Convention.

JPMorgan argues Iran and Oman could similarly structure mandatory charges for navigational safety as service fees rather than transit tolls, making the strategy legally defensible. A bilateral Iran-Oman transit authority could eliminate legal ambiguity, providing revenue for Oman and legitimacy for Iran while reopening the Strait.