RIYADH, Saudi Arabia — Iran and U.S. ally Oman are moving forward with plans to charge for ship transits through the Strait of Hormuz despite public objections from Washington, according to an Iranian official and four diplomats with knowledge of the matter.
If implemented, the plans would represent an important shift from the pre-war scenario along this strategic route, highlighting how the decision by the US and Israel to attack Iran on February 28 altered the Middle East in profound and unexpected ways.
Before the war, the Strait of Hormuz was an international shipping route between Iran and Oman through which vessels sailed freely, transporting oil and gas from the Persian Gulf to the rest of the world. During the conflict, Iran practically blocked the passage, a crucial bottleneck for global trade, causing energy prices to soar.
Since then, Iranian officials have repeatedly declared their intention to monetize the strait.
Oman recently delivered a formal proposal to the United States and other Western allies outlining a plan in which shipping companies would pay service fees to use the passage, according to the Iranian official and a regional diplomat.
A person familiar with the U.S. position confirmed that U.S. negotiators had welcomed the Omani proposal and said they had concerns they intended to discuss with Omani officials. The authorities and diplomats cited in this report spoke on condition of anonymity as this was a sensitive diplomatic negotiation.
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The future of the strait remains a central issue in talks between the United States and Iran to try to reach a lasting peace agreement.
Oman’s proposal is partly inspired by existing arrangements in the Malacca and Singapore straits, an Asian waterway in which a private foundation collects voluntary contributions for safe navigation, the regional diplomat said.
Any charges in the Strait of Hormuz would be voluntary, the diplomat said. The Iranian official, however, said payments would be mandatory.
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On Monday, Iran’s Deputy Foreign Minister Kazem Gharibabadi said the country’s priority is to reach an agreement with Oman. But if Oman is unwilling to establish a joint structure to manage the sea route, Iran will move forward alone, according to statements aired on Iranian state TV.
Oman, a sultanate located in the extreme southeast of the Arabian Peninsula, has built a reputation for neutrality over time, acting as a mediator between the United States and Iran. The country, however, has found itself in an increasingly delicate balance as the war increases regional tensions.
After news emerged in May that Oman was discussing a partnership with Iran to charge service fees across the strait, President Donald Trump threatened to bomb Oman if the country did not “behave like everyone else.”
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Just last week, Trump classified the idea of charging tolls or fees for crossing the strait as “unacceptable”.
It was not immediately clear whether the Trump administration would be willing to accept voluntary service fees.
A framework peace agreement signed this month between the United States and Iran, which halted the war, addressed the Strait of Hormuz by guaranteeing “the safe passage of commercial vessels without charge,” but only for a period of 60 days while negotiations continue to work out the details.
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The agreement stipulated that Iran and Oman must begin a “dialogue” on what will happen to the sea route after that.
The person familiar with the U.S. position said the U.S. negotiating team values the partnership with Oman and is confident it will be able to resolve disagreements over the Omani proposal at a technical level.
Secretary of State Marco Rubio told reporters in Bahrain last week that the United States would oppose any scenario in which use of the strait was monetized, regardless of whether it was called a “fee, toll or donation.”
“We need to return to what the Straits were like before this conflict,” he said.
Analysts, however, say Iran’s new power to disrupt traffic on such a sea lane is too important a lever to abandon.
Iranian Foreign Minister Abbas Araghchi told state TV this month that the Strait of Hormuz would not return to its pre-war status, when passage was free.
Publicly, Oman has been more vague about its plans. The country’s Foreign Minister Badr al-Busaidi rejected the idea of charging fees just for crossing the strait, saying it would be illegal. But he made a distinction between “transit fees” and charges for services provided by countries along the crossing.
In an interview on Sunday with Arabic-language radio Monte Carlo Doualiya, Al-Busaidi said the responsibilities of keeping the waters of the strait safe and free from pollution, as well as responding to periodic emergencies involving vessels, “undoubtedly cost money.”
“All we are saying is that perhaps we can benefit from some existing experiences, on a voluntary basis, among the countries involved in this matter,” he added.
Oman’s proposal is likely to be a source of contention among other Gulf Arab countries, which depend on the Strait of Hormuz to export oil and gas.
At an event organized this month by the European Council on Foreign Relations, Saudi Arabian Foreign Minister Prince Faisal bin Farhan said the Strait of Hormuz “must return to the pre-war status quo.”
“Why should we now, as a result of a conflict, accept some new arrangement that will be imposed on him?”
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