STRAIT OF HORMUZ — Oman and Iran are engaged in joint talks regarding a new maritime security order for the Strait of Hormuz. Reports indicate that the discussions could lead to the establishment of transit fees in the waterway.

Oman stated that any agreement reached concerning the Strait of Hormuz will comply with international law. The United States opposes the implementation of tolls in the Strait. On June 17, the United States and Iran signed a memorandum of understanding, under which Iran cannot impose tolls on ships during the 60 days of negotiations to find a permanent settlement.

The administration of U.S. President Donald Trump previously threatened to impose sanctions against Oman if it assisted Iran in establishing a tolling system. Treasury Secretary Scott Bessent stated on May 28, 2025, "All nations should reject outright any efforts by Iran to disrupt the free flow of commerce." Iran seeks international recognition of its control over the Strait of Hormuz, including the ability to levy fees on vessels entering or leaving the Gulf.

Dania Thafer, executive director of the Gulf International Forum, stated that if Gulf nations and important international actors approve, Oman would likely proceed with a fee service system in the Strait of Hormuz. She also stated that markets would respond accordingly to conditions that ensure the safe passage of ships, even with the implementation of fees or tolls. "You have a regional power, such as Iran, and then you have a global power, the U.S., putting pressure on Oman," Thafer said. "So, they're trying to use a degree of strategic ambiguity to try to stay out of the conflict as much as possible and not undermine these very strong players."

Andrew Leber, a non-resident scholar in the Carnegie Middle East Program, said, "As a result, we've seen Omani diplomats tack back and forth between insisting no toll will be charged, and suggesting that ships might be asked to pay a fee which will be called something other than a toll." He stated that it is highly likely Oman will co-sign some form of Iranian service-fee plan or present it in a milder way until it directly conflicts with its Arab neighbors or the United States.

Why It Matters

The Strait of Hormuz typically handles approximately 20% of the world's oil. The Strait is governed by the principle of transit passage, which does not allow states to charge vessels for passage. Oman is situated on the southeastern coast of the Arabian Peninsula, opposite Iran across the Strait of Hormuz.

Oman has historically served as an intermediary in regional crises. Both the United States and Iran maintain diplomatic relations with Oman. The flow of traffic through the Strait of Hormuz was previously blocked during a war, which resulted in a global energy crunch.