The Gulf Country That Stands to Gain Most From Iran's Ceasefire Plan

As the United States and Iran rushed to claim victories in their two-week ceasefire agreement, Oman seemed to have emerged as the biggest gainer from the war in the Middle East. Iran's 10-point ceasefire proposal to the US has a provision allowing both Tehran and Muscat to levy a transit fee on ships passing through the Strait of Hormuz, the crucial energy waterway under the Islamic Republic's chokehold since the start of the war.

The 34-kilometer strip of water between Iran and Oman has been considered an international waterway, with no toll levied by either country in the past. The narrow mouth of the Persian Gulf facilitates roughly one-fifth of global oil trade.

Officials in Tehran told the Associated Press that Iran would use money collected through Hurmuz for post-war reconstruction, as the conflict has caused widespread destruction to the country's defence, administrative, and civilian infrastructure.

US President Donald Trump also said Iran's proposal is "workable" after Tehran agreed to reopen the strategic waterway conditionally, which had effectively been closed since the war began on February 28. Trump said Iran had presented a 10-point proposal that was a "workable basis" for negotiations, and he expected an agreement to be "finalised and consummated" during the two-week window.

What's Iran's plan?

Iran wants any permanent peace deal in the war with US and Israeli forces to allow Tehran to demand fees for ships passing through the strait. The fee would vary depending on the type of ship, its cargo and unspecified other prevailing conditions, a senior Iranian official has told Reuters.

Iran's deputy foreign minister, Kazem Gharibabdi, said last week that Tehran was drafting a protocol with Oman to require ships to obtain permits and licences to pass the Strait, saying the move was intended to facilitate rather than restrict transit.

Oman said it had held talks with Iran on options to ensure smooth transit but did not say if any agreements had been reached.

Iran's Hormuz Leverage

A small number of ships have passed through Hormuz since Iran's Islamic Revolutionary Guards Corps (IRGC) blocked it off at the start of the war, firing on some vessels in the Gulf.

There have been reports that Iran has levied a payment of $2 million from some vessels to traverse the Strait, but NDTV was unable to confirm that.

Can Iran Impose the Fee? 

The UNCLOS maritime convention governing international sea law says states bordering straits cannot demand payment simply for permission to pass through.

However, they can impose limited fees on ships for specific services, such as piloting, tugging, or port services, though these may not be levied more heavily on vessels from any particular country.

But given the fact that Israel and the United States have already spent weeks pounding Iran, it is challenging to say what the international community could do to force it to allow free passage through the Strait of Hormuz.

Any military endeavour to keep the Strait open would likely involve another major, prolonged ground operation along a mountainous coast against the well-entrenched Iranian forces that can target vessels from far inland.

China, a world power that still has strong ties with Iran and is the biggest importer of energy shipped through the Strait, could have more influence than other countries.