Oman and Iran Discuss Fee Plan for Strait of Hormuz Navigation Services

Oman has proposed that Iran and Oman jointly collect fees from vessels transiting the Strait of Hormuz to fund navigation safety services, according to two people familiar with the discussions. The proposal follows a period of U.S.-Iran conflict that ended with a pause in strikes.

The plan draws on the model of the Aids to Navigation Fund operated by Singapore, Malaysia, and Indonesia in the Straits of Malacca and Singapore. That fund has collected $23 million over 15 years. Under the proposed arrangement, Iran and Oman would collect payments from ships passing through the Strait of Hormuz, according to officials and diplomats with knowledge of the matter.

Iran and Oman issued a joint statement last week that did not rule out collecting fees. The Strait of Hormuz handles the transport of 20 percent of the world's oil supply. Before the U.S.-Iran conflict, more than 130 vessels sailed through the strait daily.

The Trump administration has stated that Tehran cannot charge tolls. President Trump previously described toll or fee schemes in the strait as unacceptable. One regional diplomat told The New York Times the fees would be voluntary. Iranian officials have said the payments would be obligatory. Iran has projected that Hormuz tolls could generate $40 billion per year.

An Omani official, quoted via Press TV, described potential services: "Some services may include enhancing navigational safety, protecting waters from pollution, and increasing preparedness to deal with accidents or emergencies."

It is not clear from public statements whether the U.S. would accept a voluntary fee arrangement. The vessels' operators have not been publicly identified by the U.S. government in connection with any fee discussions. Oman's foreign ministry has not issued a separate comment beyond the joint statement with Iran.