Current Affairs
Iran-Oman Hormuz Deal Faces Sanctions and Insurance Barriers
A proposed Iran-Oman agreement to control ship traffic through the Strait of Hormuz faces major obstacles from U.S. sanctions and insurance restrictions. Iran seeks fees of 5% to 7% of cargo prices, while Oman proposes around 3%. Lloyd's Market Association introduced a clause in late July terminating insurance coverage for vessels paying transit fees, creating a catch-22 situation for shipping companies unable to comply with both Iranian demands and insurance requirements.
