Maritime transport industry sources told Reuters that the proposed transit plan through the Strait of Hormuz via Iran and Oman in its current form is effectively not workable.

Under the plan, Iran would still retain the ability to interfere in the traffic of inbound vessels, while outbound ships would have to pass through a route between Iran and Oman, and the exit permits would be issued by Oman after notifying Iran.

Industry sources say the plan faces serious obstacles because Iran is seeking to collect transit fees equivalent to 5% to 7% of the cargo value, and paying those fees could result in a violation of U.S. sanctions and invalidate war-risk insurance coverage, exposing shipowners to significant legal and financial risks.