Oman Proposes Joint Fee Collection Plan for Strait of Hormuz with Iran

Oman and Iran have agreed to move forward with a plan to collect voluntary fees from ships sailing through the Strait of Hormuz, according to multiple reports. Oman said the proposal is modeled on fees collected for the Straits of Malacca and Singapore in Southeast Asia, where voluntary contributions support safe navigation.

Iranian officials insisted the payments would be obligatory, while one regional diplomat told The New York Times the fees would be voluntary. The plan also differs from the Malacca model in scale: the Aids to Navigation Fund operated by Singapore, Malaysia and Indonesia has collected just $23 million over 15 years.

Background to the Proposal Details of the plan emerged one day after Oman’s Foreign Minister Badr al-Busaidi expressed support for a joint plan with Iran to impose maritime service fees on the Strait of Hormuz, Iran’s Press TV reported. Al-Busaidi said Muscat remains opposed to Iran’s direct toll scheme but added that fees were necessary to keep navigation safe.

“Some services may include enhancing navigational safety, protecting waters from pollution, and increasing preparedness to deal with accidents or emergencies,” the minister said. The position echoes a joint statement from Tehran and Muscat last week that the governments refused to rule out collecting fees after the Trump administration publicly insisted that Tehran cannot charge tolls.

The developments could permanently change the strait, which handles the transport of 20% of the world’s oil supply. Before the U.S. and Israel launched its war with Iran, the international shipping route was free and open to the more than 130 vessels that sailed through its waters every day.