Iran and Oman Eye Hormuz Fees Despite US Opposition

Iran and Oman announced Tuesday that they would establish a joint working group to study what they called “maritime service fees” for passage through the Strait of Hormuz.

The plan was firmly rejected by Washington, even as Oman's foreign minister insisted both sides remained committed to "toll-free safe passage."

In a joint statement following high-level meetings in Muscat, the two countries said they had "agreed to maintain their dialogue on this issue through a joint working group between the two foreign ministries."

The group aimed to reach agreement on "the future administration of navigation in the Strait of Hormuz and the services that will be provided in this regard and the costs associated with them in accordance with international standards."

The statement also emphasized their "sovereign rights over their territorial waters."

The meetings brought together Iranian Foreign Minister Abbas Araghchi and chief negotiator Mohammad Bagher Ghalibaf with Oman's Sultan Haitham bin Tariq and Foreign Minister Badr Albusaidi.

Ghalibaf has previously stated that fees will come into effect after a 60-day charge-free period stipulated in the memorandum of understanding signed with the United States last week.

A Semantic Battle With High Stakes

Iran has repeatedly reframed its plans in terms of services rather than tolls, which are prohibited under international law for international waterways.

Secretary of State Marco Rubio, speaking in the UAE as part of a Middle East swing, was unequivocal: "No country is allowed to charge tolls or fees on an international waterway. That's existing international law, that's the way it is."

U.S. Treasury Secretary Scott Bessent has threatened to impose sanctions on Oman if it helps impose any tolling system.

Trump warned that if Oman tries to jointly control the waterway with Iran, he will "blow them up."

Despite those warnings, Iran has already moved to institutionalize its position by establishing the Persian Gulf Strait Authority, a newly formed agency in Tehran that is pushing commercial shipping vessels to register before transiting the strait.

Western insurance underwriters are resisting compliance.

What the MOU Actually Says

The memorandum of understanding between the US and Iran states that Iran and Oman will discuss the "future administration and maritime services" of the strait, alongside other Gulf countries.

Iran's foreign ministry has cited that language as authorization for the fee plan.

Critics say Iran is using the 60-day charge-free window to normalize a framework it intends to monetize once the window closes.

Before the MOU was signed, Oman came under fire from U.S. officials over reports that it was planning to co-impose tolls with Iran.

The strait carries roughly 20% of the world's seaborne crude oil and liquefied natural gas in normal conditions.

It was closed by Iran after coming under fire from the U.S. and Israel before being reopened as part of last week's deal.

Traffic has resumed but remains below pre-war levels.

U.S. gas prices remain 30 to 50 cents per gallon above pre-war norms and are not expected to return to those levels until at least the end of autumn.