The vice president said details will be worked out in technical negotiations, but shippers warn the current terms lack clarity on timing and safe routes
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Shipping industry groups are questioning the clarity of the newly reached U.S.-Iran agreement even as Vice President JD Vance declared Monday that toll-free, long-term access through the Strait of Hormuz is what Washington is counting on, according to CNBC.
"Our expectation is that the strait is going to be opened in a toll-free way for the long term, and that's the sort of thing that we're going to figure out in these technical negotiations," Vance said.
A different picture has emerged from Iranian state media, which reports that toll-free passage is set to last just 60 days, at which point Tehran and Muscat would assume joint stewardship of the waterway, according to Iran's Tasnim news agency. The U.S. and Iran are expected to sign a formal agreement on Friday in Switzerland.
President Donald Trump declared the deal complete in a social media post, writing: "I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!"
Traffic in the strait had picked up noticeably in the preceding day, Vance claimed.
Frontline CEO Lars Barstad expressed confidence that shipping would resume quickly after a formal signing, though he called for "clearer language around the transit protocol." The tanker company has 80 vessels in its global fleet, with five currently unable to leave the Persian Gulf.
Questions about when ships can safely move and which routes are viable remain unresolved. Bimco, the international shipping trade association, warns that public statements issued by both governments fall short of what the industry needs. "Due to lack of details and a history of overly optimistic reassurances, we believe the security situation for the shipping industry remains volatile, and we still consider it very risky for ships to commence transits at this point," said Jakob Larsen, Bimco's chief safety and security officer. Among the hazards Larsen flagged, mines loomed largest — a threat given additional weight by congressional testimony from Secretary of State Marco Rubio earlier this month in which he said Iran had seeded much of the strait with them.
The Strait of Hormuz carries roughly one-fifth of the world's seaborne oil and liquefied natural gas. Iran had largely closed the strait since hostilities erupted, pushing energy prices higher globally. Oil prices fell more than 6% on Monday and global stocks rose after the deal was announced.
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