Iran and Oman have reached a consensus to advance a scheme that imposes “voluntary” charges on vessels traversing the Strait of Hormuz, as highlighted in several reports.
Initially, Oman opposed Iran’s idea of implementing tolls in this strategically crucial passageway. However, Oman has now presented a formal plan to the United States and other allied nations, suggesting that shipping companies should contribute service fees for passage through the strait, according to a report by the New York Times.
The government of Oman asserts that their proposal draws inspiration from the fee structure used in the Straits of Malacca and Singapore in Southeast Asia, where shippers voluntarily contribute for safe passage.
Although a diplomat from the region informed the Times that the charges would be non-mandatory, Iranian officials maintain that these payments will, in fact, be compulsory.
The initiative also bears a significant difference from the toll setup in the Strait of Malacca — over 15 years, the Aids to Navigation Fund, managed by Singapore, Malaysia, and Indonesia, has accumulated a mere $23 million.
Iran projected Hormuz tolls could bring in $40 billion per year.
Details of the plan come just a day after Oman’s Foreign Minister Badr al-Busaidi expressed support for a joint plan with Iran to impose “maritime service fees” on the Strait of Hormuz, Iran’s Press TV reported.
Al-Busaidi said Muscat remains opposed to Iran’s direct toll scheme for the critical oil choke point, but said fees were necessary to keep navigation in the waters safe.
“Some services may include enhancing navigational safety, protecting waters from pollution, and increasing preparedness to deal with accidents or emergencies,” the minister said of the collection plan.
The position echoes a joint statement from Tehran and Muscat last week that the governments refused to rule out collecting fees in the Strait of Hormuz after the Trump administration publicly insisted that Tehran can’t charge tolls.
The developments threaten to permanently change the strait, which oversees the transport of 20% of the world’s oil supply.
Before the US and Israel launched its war with Iran, the international shipping route was free and open to the more than 130 vessels that sailed through its waters every day.
It remains unclear whether the US will accept Oman’s plan to charge voluntary service fees following President Trump’s repeated insistence that the Strait of Hormuz should remain free waters for all.
The president previously described any tolls or fees schemes along the strait as “unacceptable,” going as far as to threaten Oman if it did not “behave just like everybody else.”