Experts have declared a proposed agreement to introduce transit fees for vessels passing through the Strait of Hormuz practically unworkable.
The assessment highlights that a host of structural barriers, including US sanctions and strict insurance underwriting rules, render the mechanism impossible to implement in the current geopolitical climate.
The rejection of the fee-based model underscores the deepening impasse in efforts to secure the vital waterway.
With Iran having previously rejected a US proposal for a parallel shipping corridor, the dismissal of this alternative framework leaves traders with no clear diplomatic off-ramp.
The Strait remains a critical chokepoint for global energy supplies, and the absence of a viable security or financial arrangement keeps route exposure high.
Market participants are likely to view the news as a confirmation that shipping disruption risks will persist in the near term.