NBC News reported that Iran and Oman presented the United States with a proposal to administer the Strait of Hormuz, including jointly collecting fees from ships passing through the waterway.
The New York Times earlier reported that Iran and Oman are moving forward with plans to collect transit fees from ships transiting the Strait of Hormuz, despite public objections from the United States, according to an Iranian official and four diplomats involved.
Generic Oil Tanker Image. Image Credit: Creative Commons.
Oil Platform. Image Credit: Creative Commons.
Omani Foreign Minister Sayyid Badr bin Hamad Al Busaidi said earlier this week that Oman does not support imposing fees on ships to transit the Strait.
However, he’s proposing no mandatory fees but voluntary charges to shipping companies to maintain the vital waterway, in a manner similar to models used in the Strait of Malacca and Singapore.
The Iranian Deputy Foreign Minister, Kazem Gharibabadi, however, insists that the payments would be obligatory and has threatened to impose tolls unilaterally if Oman does not reach a joint agreement with Iran.
The Strait Of Hormuz Is An International Waterway, Says The US
Prior to the conflict’s start in late February, the Strait of Hormuz was an international shipping route between Iran and Oman, through which vessels sailed freely, carrying oil and gas from the Persian Gulf to the rest of the world. However, Iran effectively blocked the waterway, an important chokepoint for global trade, sending energy prices skyrocketing.
Since then, Iranian officials have repeatedly declared their intentions to monetize the strait. However, the exact nature of these charges remains a point of intense diplomatic negotiation and international disagreement.
The United States has repeatedly said commercial navigation through the Strait of Hormuz should remain free. President Donald Trump has called the idea of charging ships “unacceptable.”
The president threatened to bomb Oman with military action if it “did not behave like everyone else.”
NBC added that a source familiar with the discussion said U.S. negotiators have concerns about the proposal but intend to discuss it with the Omanis and believe the issue can be resolved.
“The American team values its partnership with Oman and is confident that it can resolve differences at the technical level,” the source said.
US Secretary of State Marco Rubio also rejected the proposal during a visit to Bahrain last week, saying the United States would oppose any system that requires ships to make payments, regardless of whether they are called fees, tolls, or voluntary donations.
“We need to get back to what the straits looked like before this conflict,” Rubio said.
White House spokesperson Anna Kelly has stated that the Strait of Hormuz is an international waterway and that the U.S. position remains clear: Iran cannot charge tolls or fees for commercial passage.
“President Trump has been clear that Iran cannot charge for passage through the Strait of Hormuz, which is an international waterway.”
Oman Proposes a Voluntary Service Fee For Passage
Omani officials propose a voluntary service-fee model to fund maritime safety, environmental protection, and emergency services, rather than a mandatory toll. The NBC source said that Iran is pushing for the tolls and the US would eventually accept them.
Fees for the strait would be collected in consultation with the international community and through the International Maritime Organization, the official said. And if the participating countries agree, the funds would be shared between Iran and Oman, the official added.
Oman’s proposal is modeled on the Straits of Malacca and Singapore agreements, an Asian waterway where a private Japanese foundation collects voluntary contributions for safe navigation, the regional diplomat said.
The fees in the Strait of Hormuz would be voluntary, according to Oman’s proposal. Oman’s Foreign Minister, Badr al-Busaidi, has rejected transit fees as illegal but has distinguished between “transit fees” and fees for services provided by countries along the strait.
What those “services provided” are has yet to be specified, when none were provided before.
US Threatens Sanctions For Anyone Who Pays Tolls Or Fees
Treasury Secretary Scott Bessent warned that the U.S. would aggressively penalize and sanction any actors facilitating a toll or fee scheme.
Anyone cooperating with the Persian Gulf Strait Authority or paying these tolls will face severe sanctions risks, as the funds ultimately benefit the Islamic Revolutionary Guard Corps (IRGC).
“The Iranian military’s latest attempt to extort global maritime trade is proof that Economic Fury has left the regime desperate for cash,” said SecretaryBessent.
“Through Economic Fury, the United States has imposed a financial stranglehold on the world’s leading state sponsor of terrorism. Treasury has deprived the Iranian regime of revenue for its weapons programs, terrorist proxies, and nuclear ambitions.
“Under President Trump’s leadership, we will remain relentless in our pursuit to constrict the network of vessels, intermediaries, and buyers through which Iran exports both its oil and malevolence.”
Oman Guaranteed No Fees For Ships Transiting The Strait
Oman’s Transport Minister, H.E. Eng. Saeed bin Hamoud bin Saeed Al Maawali confirmed back in April that the Sultanate has signed agreements guaranteeing that no fees will be imposed on ships passing through the Strait of Hormuz.
“Oman’s position is clear regarding the strait – it has signed all relevant international maritime transport agreements, and fees cannot be imposed under these agreements,” he said.
The minister made the statement amid discussions about maritime charges, emphasizing Oman’s commitment to maintaining free and safe navigation through the strategic waterway.
And on June 30, in an interview with Monte Carlo International Radio, Omani Foreign Minister Sayyid Badr said that Oman rejects imposing fees on ships passing through the Strait of Hormuz, characterizing it as “internationally prohibited.”
Badr stressed that the Sultanate of Oman seeks to ensure that navigation through the Strait of Hormuz remains safe, secure, and free for all countries, including Iran, given the waterway’s importance to the global oil transshipment to the world economy.
Iran Says There Is “No Free Service Anywhere”
The Iranians are using the threat of closing the Strait as a cash cow that they can help rebuild their shattered economy.
Mehdi Mohammadi, a senior adviser to General Mohammad Bagher Ghalibaf, Iran’s lead negotiator with the United States, said on social media that terminology did not matter to Iran “whether you call it tolls, service fees for security or naval passage.”
“There is no free service anywhere in the world,” he said.
About the Author: Steve Balestrieri
Steve Balestrieri is a National Security Columnist. He served as a US Army Special Forces NCO and Warrant Officer. In addition to writing on defense, he covers the NFL for PatsFans.com and is a member of the Pro Football Writers of America (PFWA). His work was regularly featured in many military publications
