US lifts Iran naval blockade following US-Iran deal

**Vishala Sri-Pathma** (0:01)
Weapons, money and ships. It sounds familiar, but this Iran deal hits different.

**John Storpert** (0:06)
We're not quite clear on exactly how many ships have gone through, and I wouldn't imagine we will be for a few days.

**SPEAKER_3** (0:13)
12.5 million barrels of oil went through the Strait of Hormuz. That is a high since the beginning of the conflict.

**Vishala Sri-Pathma** (0:19)
It's World Business Report from the BBC World Service. I'm Vishala Sri-Pathma. On the way, shipping giants are on edge with fears a new US-Iran deal could pave the way for charges on the Strait of Hormuz and the Tartan Army charm the Americans into legalising haggis.
All eyes are on the Strait of Hormuz once again, as the US Vice President, JD Vance, says the deal between America and Iran is already bearing fruit.

**SPEAKER_3** (0:54)
Last night, 12.5 million barrels of oil went through the Strait of Hormuz. That is a high since the beginning of the conflict. Oil prices are down nearly at their level from the pre-war conflict. Gas prices dropped below $4 a gallon today for the first time since the conflict. And importantly, they're gonna keep falling further, given how low oil prices are.

**Vishala Sri-Pathma** (1:15)
So this all follows President Donald Trump and Iranian officials signing what they're calling a Memorandum of Understanding, essentially a first step towards ending their war. It stretches the current truce by another 60 days, giving both sides a bit of breathing room to try and hammer out a full peace deal. But in the shipping world, that's ringing a few alarm bells. There are fears it could lead to charges on the strait for a route that's always been free. So, big questions then for the maritime world. What could this mean for costs, for trade, and ultimately for prices we all pay?
John Storpert is Head of the Marine Department and Secretary of the Marine Committee in the UK.

**John Storpert** (2:00)
We have seen a lot of ships moving certainly earlier in the day to make use of the two channels. There's one in the north of the strait, one in the south of the strait, with a view to getting out of the gulf region. But it's unclear what conditions apply and who is overseeing those transits. So really we're still kind of in limbo as to understand the full impact of it and what actually is going to be put in place for I guess the next 60 days.

**Vishala Sri-Pathma** (2:29)
And how is the situation at the moment? How much traffic is going through the Strait of Hormuz right now?

**John Storpert** (2:37)
It was going at about 10 ships a day through the Omani route which the US Navy has overseen.
I haven't seen complete figures, but there was an awful lot of shipping looking to use the Northern route earlier today. That may have changed since the IRGCN said that they still controlled things. So we're not quite clear on exactly how many ships have gone through and I wouldn't imagine we will be for a few days.

**Vishala Sri-Pathma** (3:04)
There is some concern over the language used in the terms and conditions of the accord signed today. What concern do you share?
And also, is there any clarity over whether ships will be charged now to go through the Strait of Hormuz?

**John Storpert** (3:23)
This is the $64,000 question, is what is meant by maritime services and what is envisaged in terms of the deal that will be put in place after 60 days? So tolls, in our view, are unacceptable. This is an international waterway. Freedom of navigation should be respected by all literal states.
Maritime services puts it in a different kind of ballpark though, because there are equivalents where states rather than ships and companies pay into funds to look after aids to navigation and to help with oil spill cleanups. So it's really unclear what that means. But we would hope that any lasting peace deal that goes beyond the MOU would actually return it to a state of affairs prior to the war where ships could just transit freely through these straits.

**Vishala Sri-Pathma** (4:21)
Okay. And just to be clear, previously, there was no, there hasn't been any charge to go through the Strait of Hormuz.

**John Storpert** (4:31)
No, there's no precedent for it and there's no mechanism under international law that would allow it in an international waterway.

**Vishala Sri-Pathma** (4:38)
And so the voluntary fund is something that states pay into, not industry.

**John Storpert** (4:46)
Exactly. That's how it would work. It would be a state initiative and I assume, again, it's very, very hazy at the moment, what is meant by this language, but one assumes that it will be overseen by the International Maritime Organization.