Iran and Oman are close to an agreement to fully reopen the Strait of Hormuz to shipping traffic that would see both countries collect a so-called “service fee” to cover environmental and security costs.

The New York Times reported late Monday, citing Iranian and US officials familiar with the developing accord, that ships entering the strait from the Indian Ocean via the Gulf of Oman would be required to take a route through Iranian territorial waters.

Vessels exiting the strait from the Persian Gulf would take a route near Oman’s coast along the south side of the strait.

Iran’s Foreign Ministry confirmed ongoing talks with Oman to establish what it called a “temporary” shipping route through the waterway, through which around one-fifth of the world’s oil traveled in peacetime.

Saeed Ajorlu, a member of Tehran’s negotiating committee, told state broadcaster IRIB that such an arrangement would be in effect for one to three months “where Iran is dominant.”

“We assert that the legal regime for passage through the Strait of Hormuz must not return to its pre-war state,” said Ajorlu, referring to when no state controlled the waterway.

However, a US official told the Times that Iran’s description of the would-be agreement was “not accurate,” insisting that no tolls would be collected and Tehran would have no say over which ships could traverse the strait or what route would be used.

The Wall Street Journal reported last week that Iranian and Omani negotiators were working toward an arrangement to restart commercial shipping, although major disagreements remained over transit fees and the rules governing passage. A US official told the paper Washington remained closely engaged with mediators on an indirect basis.

“As long as the US mischief continues, as long as the Iranian sea siege continues, as long as the US military aggression against Iran and its allies continues, there will be no [permanent] change in … Hormuz,” Tehran Foreign Ministry spokesman Esmail Baghaei said Monday.

In a July 14 statement, Oman’s Foreign Ministry described its role as “transparent and neutral cooperation with all parties” aimed at restoring freedom of navigation through the Strait while complying with international maritime law.

In June, Iran and Oman created a joint working group to negotiate navigation, shipping services and the future management of the strait, pledging to keep the waterway “a secure and open” route for international shipping.

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