Oman announced on Wednesday that it will allow ships to transit the Strait of Hormuz without charging any transit fees, reaffirming its responsibility for the strategic waterway and its vital role in global trade.

The Sultanate said in a statement the decision stems from its commitment to international law and the UN Convention on the Law of the Sea, which guarantee freedom of navigation. It added that the move aligns with recent understandings reached between the United States and Iran to de-escalate tensions in the region.

In coordination with the International Maritime Organization IMO, Oman said it has opened a temporary maritime corridor for all vessels based on coordinates issued by the IMO and Omani authorities. Ships wishing to use the route must coordinate directly with the IMO, the statement added.

The Strait of Hormuz handles nearly 20% of the world’s oil shipments, making any disruption a major risk to energy markets.