Iran, Oman advance plans for Strait of Hormuz transit fees despite US opposition: Report

WASHINGTON: Plans to introduce payments for vessels transiting the strategic Strait of Hormuz are being advanced by Iran and Oman despite public objections from Washington, according to a report published by The New York Times.

The implementation of the proposal would represent a major shift from the pre-war status of the critical waterway, where merchant ships had historically transited free of charge between the two coastal nations while ferrying oil and gas supplies from the Persian Gulf to international markets.

During the hostilities earlier this year, Iran enforced an effective blockade on the Strait of Hormuz, throwing one of the most vital maritime trade corridors into chaos and driving global energy costs significantly higher. Following the conflict, Iranian authorities have consistently vocalised their intentions to monetise the channel.

According to the report, a formal proposal has been submitted by Oman to the United States, alongside other Western allies, outlining a framework under which maritime transport firms would tender service fees to traverse the Strait of Hormuz.

Speaking to the NYT, a person familiar with the US position stated that American negotiators had received the document and intended to discuss their concerns with Omani authorities. The person and a regional diplomat indicated that the text referred to voluntary service fees rather than mandatory tolls.

Conversely, an Iranian official stated that the payments would be compulsory. The future governance of the Strait of Hormuz continues to be a central talking point in ongoing deliberations between Washington and Tehran aimed at securing a permanent peace treaty.

According to the regional diplomat, the framework designed by Oman draws inspiration from operational structures utilised in the Straits of Malacca and Singapore, where a private foundation gathers voluntary contributions to fund maritime safety initiatives.

On Monday, Iran’s Deputy Foreign Minister, Kazem Gharibabadi, stated that the primary focus for Tehran was to cement an accord with Oman regarding the joint administration of the shipping lane. However, according to remarks carried by Iranian state television, Gharibabadi warned that Iran would proceed independently if Oman failed to agree on a bilateral framework.

Oman has historically functioned as a diplomatic intermediary between the United States and Iran, consistently attempting to preserve its neutrality amidst geopolitical friction in the region.

Following the emergence of reports in May indicating that Oman had held discussions to partner with Iran on levying service fees in the channel, US President Donald Trump warned he would bomb Oman if it did not “behave just like everybody else.”

Furthermore, Trump last week characterised the concept of gathering tolls or fees for transit through the Strait of Hormuz as “unacceptable”. It remains uncertain whether the Trump administration will tolerate a mechanism structured around voluntary service fees.

A framework peace accord signed by the United States and Iran earlier this month guaranteed “the safe passage of commercial vessels with no charge” through the Strait of Hormuz for a duration of 60 days while discussions persist over a permanent setup. The pact also mandates that Iran and Oman launch a bilateral dialogue concerning the future oversight of the passage once the 60-day window expires.

According to The New York Times, American interlocutors highly valued the diplomatic partnership between Washington and Oman and expressed confidence that the friction surrounding the draft could be ironed out through technical consultations.

Three European diplomats stated that Omani officials had initially framed the proposal as a fallback measure to ensure the continuity of maritime commerce had the armed conflict persisted. While European administrations remain opposed to the implementation of transit fees, they are focused on guaranteeing that any finalised mechanism aligns with international legal standards, they said.

According to remarks carried by Iranian state television, Gharibabadi stated that Iran and Oman are scheduled to initiate talks next week concerning the logistics of the strait, including the levying of fees from passing merchant ships and adjustments to designated shipping lanes.

Oman has publicly asserted that demanding payments from vessels simply for navigating the strait would violate international law. Foreign Minister Badr al-Busaidi has alternatively drawn a distinction between basic transit fees and remuneration for services rendered by the littoral states flanking the trade route.

Last week, a secure maritime route passing through Omani territorial waters was formally designated by Oman and the International Maritime Organisation. Following this development, Iran launched an attack on a cargo vessel within the Strait of Hormuz, prompting the International Maritime Organisation to halt operations aimed at evacuating hundreds of stranded ships from the waterway. (ANI)