Iran intends to introduce service fees for vessels transiting the Strait of Hormuz and will grant ‘special treatment’ to friendly nations, its ambassador to China declared at a security forum in Beijing on 4 July, compounding uncertainty over the waterway’s future once a temporary 60-day free-passage arrangement lapses. According to Tehran, the levies are not a toll but payments to cover security supervision and environmental costs, and will be drawn up in ‘collaboration and cooperation’ with Oman, which shares sovereignty over the strait. The pledge of preferential conditions for states that ‘stood by us during the hard times’ was widely understood in regional capitals to refer to China, which had earlier demanded restored freedom of navigation.

Washington immediately contested the plan. President Donald Trump, claiming Iran had promised ‘no charges of any kind’, warned last month that negotiations would end if fees were imposed. US officials interpret the memorandum of understanding that paused the February conflict as barring tolls or charges beyond the initial 60 days, whereas Tehran insists the text merely guarantees free passage temporarily and that a new fee regime is both expected and lawful under UNCLOS, provided it relates to services rendered. The dispute has left the strait’s future legal and operational framework open, with American and European cargo potentially facing a competitive disadvantage against Chinese-flagged vessels.

From Paris and London, efforts to secure the waterway independently have met stiff resistance. France and the United Kingdom announced a multinational mission to clear mines in coordination with Muscat, but Iran’s deputy foreign minister warned that the strait was ‘not a stage for foreign military displays’ and that mine-clearance would remain an exclusively Iranian operation. Military analysts in the Gulf note that without Tehran’s consent, any demining flotilla would require massive protective escorts, risking escalation. An attempt by the International Maritime Organization to escort stranded vessels out of the Gulf was suspended within a day after Iranian forces attacked ships that deviated from approved routes.

Negotiations in Doha remain deadlocked on core issues, including the release of frozen Iranian funds and the start of demining—two preconditions for broader talks on Iran’s nuclear programme. Viewed from Beijing, China has sought to influence the talks through its partnership with Pakistan while publicly calling for unimpeded shipping. With around 600 vessels and 11,000 crew still trapped in the Gulf, the absence of a durable arrangement is deepening global energy market jitters. The initial 60-day pause in hostilities leaves little time to bridge the gap between Iran’s vision of fee-based sovereignty and the US-led demand for toll-free transit, and no date has been set for a decisive round of negotiations.