Oman Proposes Joint Plan with Iran to Collect Fees in Strait of Hormuz

Oman has submitted a formal proposal to the United States and Western allies to establish a joint framework with Iran for collecting service fees from commercial vessels transiting the Strait of Hormuz, despite public American objections.

The blueprint marks a significant shift for the strategic maritime choke point, which operated as a free international shipping route prior to the recent conflict.

The Omani Framework

The proposal is partly modeled on arrangements in the Straits of Malacca and Singapore, where a private foundation collects voluntary contributions to fund safe navigation and environmental management, according to an Iranian official and four diplomats who spoke to The New York Times.

Omani Foreign Minister Badr al-Busaidi defended the initiative, drawing a sharp distinction between illegal transit tolls and legitimate charges for maritime safety and pollution control services.

However, structural disagreements persist between Muscat and Tehran over the enforcement mechanism.

While Omani diplomats emphasize that any collected fees must remain voluntary to comply with international law, Iranian officials maintain that the payments should be obligatory for all transiting vessels.

Geopolitical Friction and Allied Resistance

The proposal has drawn sharp condemnation from the Trump administration, which has consistently rejected any monetization of the waterway.

U.S. Secretary of State Marco Rubio affirmed that Washington would oppose any scenario involving fees, tolls, or donations, demanding a complete return to the prewar status quo.

Regional dynamics are further complicated by opposition from alternative Gulf energy exporters.

Saudi Arabian Foreign Minister Prince Faisal bin Farhan publicly rejected the proposal.

“Why should we now, as a result of a conflict, accept some novel arrangement that is going to be imposed on it?” he said.

Maritime Governance and Next Steps

Despite diplomatic resistance, International Maritime Organization Secretary General Arsenio Dominguez indicated that a voluntary fund structured around existing global models could prove feasible.

The U.N. regulatory agency has held technical talks with Omani officials regarding the management and viability of the framework.

Iran has signaled its intent to proceed unilaterally with monetization plans if a bilateral agreement cannot be finalized.

Iranian Deputy Foreign Minister Kazem Gharibabadi announced that bilateral talks are scheduled to commence next week to resolve specific route alterations and fee collection mechanisms.