Oman is advancing a new plan for the Strait of Hormuz that would allow Iran to collect “voluntary” fees from ships passing through the critical oil chokepoint, Reuters reported. The proposal is raising serious concerns, as it could give Tehran legitimacy to collect payments in a strategic waterway through which a significant portion of global oil flows.
1+The Omani plan draws inspiration from the Strait of Malacca in Asia, where Malaysia, Indonesia and Singapore collect optional fees from ships. Those fees cover environmental costs, search and rescue operations, and waterway management expenses. Oman, located across from the strait’s southern entrance, has previously hinted at interest in cooperating with Tehran on some fee structure. Iranian Foreign Minister Abbas Araghchi discussed the proposal with his counterparts in Oman and Saudi Arabia.
The United States has long opposed the idea of mandatory fees for passage through the Strait of Hormuz, through which about a third of global oil flowed during peacetime. It’s unclear how Iran would avoid pursuing ships that refuse to pay the fees. Last month, Oman and Iran issued a joint statement on establishing a working group to examine the future of navigation in the strait and the services to be provided there.
1+The developments come after President Donald Trump ordered the launch of Operation “Wrath of My Anger” on February 28, in response to sporadic Iranian attacks in the Strait of Hormuz designed to deter ships. Last month, the U.S. and Iran reached a preliminary memorandum of understanding that included an Iranian commitment to ensure “safe passage of commercial vessels without payment for 60 days.”
However, after signing the memorandum, Iran carried out additional attacks on ships in the Strait of Hormuz. In response, President Trump ordered 13 consecutive days of strikes against the Islamic Republic. The Pentagon stopped those strikes last Friday, after Trump claimed talks with Iran had gained momentum. “I think there’s a good chance something will happen,” Trump said Monday night, “and if so, good, if not, we’ll go back to doing what we did two days ago.”