Hormuz deal emerging between Iran and Oman
The proposed deal would give Tehran control over vessels entering the Gulf through the Strait of Hormuz, and could include fees of up to 7% of cargo value. Before the war, the Strait was freely open to all ships
TRAFFIC SEPARATION SCHEME (TSS)
1
Pre-war TSS
2
Proposed TSS (estimated)
Inbound vessels pass through Iranian territorial waters, outbound through Omani waters
3
Southern corridor
To be used for 60 days while mines cleared on pre-war route
1
2
3
Territorial waters – 12 nautical miles
IRGC naval bases
Claimed maritime borders
Disputed waters
IRAN
OMAN
UAE
UAE
Abu Musa
Hormuz
Qeshm
Bandar Abbas
Larak
PERSIAN GULF
OMAN
OMAN
IRAN
UAE
“Dark crossings”: Exports back to pre-war levels with oil shuttled to tankers in Gulf of Oman
Habshan-Fujairah Pipeline: Bypasses Strait of Hormuz
Fujairah
PROPOSED TARIFFS
Oman
3%
Iran
5-7%
U.S.
No fees
UAE seaborne exports
Million barrels/day
3.34
3.47
2.17
2.46
2.47
4.26
JAN
FEB
MAR
APR
MAY
JUN
Sources: Bloomberg, ISW
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