Iran and Oman Propose Transit Fees for Strait of Hormuz, US and Europe Object

Strait Of Hormuz (ANI image)

Iran and Oman are moving forward with plans to introduce payments for merchant vessels transiting the strategic Strait of Hormuz, despite strong objections from the United States. Oman has submitted a proposal outlining a framework under which shipping companies would pay service fees for using the Strait of Hormuz, according to a report by The New York Times. If implemented, the proposal would mark a major departure from the long-standing practice of allowing commercial ships to pass freely through one of the world's busiest energy corridors. While American officials confirmed receiving the proposal, they said discussions with Oman are ongoing. A person familiar with the negotiations told the NYT that the proposal refers to voluntary service fees, rather than mandatory transit tolls. However, an Iranian official reportedly stated that the payments would be compulsory, highlighting a key difference between the two countries' positions.

US, Europe oppose transit charges

US President Donald Trump has publicly criticised the proposal, describing any form of toll or transit fee through the Strait of Hormuz as "unacceptable." Reports also said Trump had previously warned Oman against pursuing such a plan. “"Yeah it would be unacceptable to me because we have numerous straits that if you did that for them you'd have to do it for other people. You have other straits, well I wouldn't allow it there either,” he said. Three European diplomats also told the NYT that European governments also oppose imposing transit fees but are primarily focused on ensuring any future arrangement complies with international maritime law. Oman has maintained that charging ships simply for passage through the strait would violate international law. Instead, Muscat has suggested distinguishing between transit fees and payments for services provided to vessels.