Iran Insists on Charging Fees for Ships Passing Through Strait of Hormuz Amid US-Oman Talks

The United States and Oman are seeking ways to counter Iran's insistence on imposing fees on ships transiting the Strait of Hormuz, a critical and volatile maritime passage. Their main leverage in indirect talks has been the promise to unfreeze part of $100 billion in Iranian funds held abroad, but Tehran has so far rejected this offer. Instead, Iranian military leaders have escalated threats against vessels passing through the strait.

US envoys Steve Witkoff and Jared Kushner recently traveled to Doha to discuss with Qatari mediators how to break the deadlock and implement a preliminary agreement reached last month to reopen the strait. According to sources cited by the Wall Street Journal, US and Iranian teams also discussed recent clashes in Lebanon with Qatari intermediaries. The US proposed a compromise whereby Iran would forgo claims to control the strait in exchange for releasing billions of dollars in frozen assets.

Under the agreement signed last month, Iran was supposed to gain access to some of the $100 billion frozen overseas. Iran's economy urgently needs foreign currency amid rising inflation caused by years of sanctions. Initial talks progressed toward releasing $6 billion held in Qatar, but Iran's decision to block the strait delayed the funds' release. On Thursday, Iran signaled that the money was insufficient to change its stance. Upon returning from Doha, Iranian Deputy Foreign Minister Qassem Garibabadi insisted that the Strait of Hormuz "is under Iran's command," not the US.

Ultimately, Iran aims to charge fees on every ship crossing the strait in exchange for services like security, hoping to generate up to $40 billion annually. This demand has been rejected by the US and Gulf neighbors. Daily ship traffic through the strait has dropped to 43 vessels by Wednesday, down from 75 the previous week, while before the war, over 100 ships passed daily through the strait.