Iran and Oman propose fee plan for Strait of Hormuz, sources say
Key Points:
- Iran and Oman have proposed to the U.S. a plan to jointly administer the Strait of Hormuz, including the collection of administrative fees, as part of a memorandum of understanding signed last month allowing safe transit for 60 days.
- Oman’s Foreign Minister clarified that while Oman opposes mandatory transit fees, it supports voluntary charges to maintain the waterway, similar to fee models in the Straits of Malacca and Singapore.
- The U.S. has expressed concerns about the proposal but remains engaged in discussions with Oman, emphasizing that any tolls on the international waterway would be unacceptable under international law.
- Iran is reportedly pushing for fees and believes the U.S. might eventually accept some form of them, with potential funds to be used for environmental risk assessment, rescue efforts, and technical support.
- The issue remains under discussion, with Oman having historically funded maintenance without charging fees, and no formal proposal has yet been delivered to the U.S. according to some sources.