US-Iran Ceasefire Enables Strait of Hormuz Reopening with Fees

A two-week ceasefire between the United States and Iran took effect early Wednesday, April 8, paving the way for the conditional reopening of the Strait of Hormuz, a vital global oil chokepoint, while introducing transit fees for ships passing through the waterway controlled by Iran and Oman.

The agreement follows a 40-day conflict that began with attacks by the United States and Israel on Iran, prompting Tehran to close the strait on February 28. This closure trapped millions of barrels of oil and gas, disrupted one-fifth of the world's oil trade, and triggered sharp declines in shipping volumes. U.S. President Donald Trump announced the truce hours before a self-imposed deadline, stating it would allow diplomatic negotiations. The pause came after Pakistani Prime Minister Shehbaz Sharif proposed a temporary halt in fighting, and Iran submitted a 10-point proposal outlining conditions for peace, including guarantees against future attacks, an end to Israeli strikes on Hezbollah in Lebanon, the lifting of all sanctions, and safe passage through the strait.

Under the ceasefire terms, Iran and Oman will impose fees on transiting vessels for the first time, with proceeds earmarked...