Oman refuses Iran’s proposal to levy fees on Strait of Hormuz traffic
Oman has turned down Iran’s offer to jointly impose service fees on commercial vessels passing the Strait of Hormuz, despite the IRGC’s claim that a revenue-sharing deal was reached.
Oman quietly rejected Iran’s request to jointly charge commercial ships for environmental and security services in the Strait of Hormuz, a move that runs counter to a recent IRGC announcement of a revenue-sharing accord. According to a high-ranking regional official, Muscat refused even a voluntary fee arrangement, while Tehran had not finalized the terms, a U.S. official said. The IRGC spokesman had earlier claimed that both countries had agreed on waterway shares and revenue splits following a meeting between Iranian Foreign Minister Abbas Araghchi and Omani Foreign Minister Sayyid Badr Albusaidi in Tehran.
President Trump had twice threatened to bomb Oman if it supported any de-facto tolling, and a renewed U.S. naval blockade would make such a deal impossible without American consent. Oman continues to act as a regional mediator, having helped broker the May 2025 US-Houthi cease-fire that remains in force. Meanwhile, the United Arab Emirates faces intensified U.S. sanctions targeting banks linked to Iran, as Treasury Secretary Scott Bessent expands “Operation Economic Outcast” to pressure Tehran into peace talks.
Why it matters
The decision keeps the strategic Hormuz waterway free from Iranian-backed tolls, preserving global oil flow and U.S. influence in the region.
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