Iran, Oman to jointly charge fees along Strait of Hormuz: Report

What Happened

Iran and Oman are exploring a joint plan to impose a service fee on vessels transiting the Strait of Hormuz, according to a New York Times report citing an unnamed Iranian official and four diplomats. The proposal is part of a 14-point plan agreed by the US and Iran as a temporary ceasefire, which explicitly states the strait should see 'safe passage of commercial vessels with no charge' during a 60‑day negotiation window. Nevertheless, Iran and Oman are mandated to develop a plan, and Iran’s deputy foreign minister said if no agreement is reached with Oman, Tehran would impose its own mandatory fee. Oman prefers a voluntary fee model akin to the Straits of Malacca and Singapore, while Iran insists on mandatory charges. US President Donald Trump threatened to 'blow up' Oman if it cooperates with Iran on the fee, calling the strait international waters. Oman, a historic US ally that did not participate in the recent US‑Israeli war on Iran, privately assured the US Treasury Secretary it has 'no plans for tolling the Strait', even as it engages with Iran.

Key Actors

Why It Matters

The Strait of Hormuz is a critical chokepoint for about one‑fifth of global oil transit. Any fee imposition—voluntary or mandatory—challenges centuries‑old norms of free passage and could provoke a military showdown with the US. The dispute exposes the fragility of the recent US‑Iran ceasefire, strains the US‑Oman relationship, and tests Oman’s ability to balance its ties with Iran against its alliance with Washington. It also underscores Iran’s leverage as a victorious party in the Gulf war and its drive to institutionalise economic gains from its strategic position.

Watch For

Over the coming 60‑day negotiation period, watch for any formal announcement by Iran or Oman on a tolling mechanism, as well as the US response—diplomatic démarches, naval deployments, or further threats from President Trump. Pay attention to statements from other Gulf states and international shipping industry reactions. Also monitor whether Iran makes good on its threat to levy unilateral fees if no bilateral deal is reached, potentially triggering incidents in the strait.