Oman Joins Iran in Plans to Charge Fees for Shipping Through Strategic Strait of Hormuz

Despite strong opposition from the Trump administration and Gulf allies like Saudi Arabia, Iran and Oman are advancing a joint plan to impose fees on oil tankers passing through the strategic Strait of Hormuz. This move marks a significant shift in the diplomatic and economic arrangements governing the vital waterway, which has historically been an open and free international shipping route.

The Strait of Hormuz is a crucial passage for most Persian Gulf oil and gas exports. During recent conflicts, Iran effectively blockaded the strait, causing oil prices to surge above $100 per barrel and impacting global consumers, including the U.S. Currently, a temporary 60-day framework agreement allows free passage without fees, but Iranian officials have declared this will not continue. Iranian Foreign Minister Abbas Araghchi stated the strait will no longer be free, and senior negotiator Mohadi Mohammadi emphasized that "there are no free services anywhere in the world."

Iranian Deputy Foreign Minister Kazem Gharibabadi announced that formal talks with Oman will begin soon to finalize the fee structure and shipping route changes. He warned that if Oman refuses to cooperate, Iran will proceed unilaterally. Oman, a U.S. ally caught between Western and Iranian interests, has proposed a "voluntary" payment model inspired by Singapore and Malacca Straits, where private funds cover security and environmental costs. Omani Foreign Minister Badr al-Busaidi stressed that mandatory fees would violate international law, but voluntary contributions might be lawful.

The U.S. government strongly opposes any restrictions on freedom of navigation. Secretary of State Mike Pompeo and Senator Marco Rubio have condemned the fee plan, with Trump publicly threatening military action against Oman if it does not comply with international norms. Nonetheless, U.S. officials remain hopeful that technical solutions can resolve disputes with Oman.

Tensions have already escalated to violence: Oman and the International Maritime Organization recently established a safe shipping corridor within Omani waters, prompting Iran to attack a cargo ship in the strait. This incident forced the IMO to halt the evacuation of hundreds of stranded vessels and raised security risks for shipping companies.

The Iran-Oman initiative has drawn sharp criticism from Washington, Europe, and neighboring Gulf states reliant on Hormuz for energy exports. Saudi Foreign Minister Prince Faisal bin Farhan condemned the plan at a European Council event, insisting the strait must return to its pre-conflict status without new imposed arrangements.