Iran, Oman push to become administrators of Strait of Hormuz as toll system remains unclear

What Happened

On Tuesday, Iran and Oman issued a joint statement agreeing to pursue dialogue on the future administration of the Strait of Hormuz, asserting their 'sovereignty and sovereign rights over their territorial waters' in the strait. A joint working group between the two foreign ministries will negotiate the administration of navigation and associated services and costs, in accordance with international standards. Omani Foreign Minister Badr Albusaidi stated the countries were committed to 'toll-free safe passage.' This contrasts with Iran's Persian Gulf Strait Authority (PGSA) 'Passage Rules and Regulations,' which require ship owners to obtain permission and reserve the right to impose penalties and future insurance fees. US President Donald Trump claimed on Wednesday that Iran had informed the US that no tolls, insurance costs, or other charges were being sought. Analysts warn that Iran could use an administrative framework to institutionalize requirements for advance notification and routing compliance, blurring the line between civilian maritime administration and military-intelligence activity.

Key Actors

Why It Matters

The Strait of Hormuz is a strategic chokepoint through which roughly one-fifth of global oil consumption passes. A bilateral administrative arrangement between Iran and Oman could reshape the legal and operational environment, potentially giving Iran institutional cover to collect vessel data, enforce routing compliance, and impose conditions on transit—activities it has previously carried out through coercion. This could complicate US and allied naval operations and set a precedent challenging the customary right of transit passage under UNCLOS, even as Iran is not a signatory.

Watch For

The newly formed joint working group's deliberations and any draft agreement on navigation services and costs. Whether final terms uphold or undermine the international norm of toll-free transit passage. Iranian enforcement of PGSA rules, particularly prohibitions on ships with Israeli ties, which may trigger legal challenges. US reaction and its impact on broader US-Iran negotiations, given Trump's warning that false claims would end talks.