Iran, Oman Discuss Strait Of Hormuz Shipping Fee System Despite U.S. Warning

Iran is discussing a new payment system with Oman for ships passing through the Strait of Hormuz, despite strong opposition from the United States.

The proposal could affect one of the world’s most important shipping routes, as around 20% of global seaborne oil and natural gas trade moves through the Strait of Hormuz.

Any new charges, delays or restrictions in the waterway could impact global shipping, tanker operations, energy prices and marine insurance costs.

According to reports first published by Bloomberg and later detailed by the New York Times, Iran is proposing a system under which vessels using the Strait of Hormuz could face charges described as service fees rather than direct transit tolls.

Officials familiar with the talks said Iranian authorities have discussed sharing revenue from the proposed system with Oman.

Oman, a long-time US ally located along the Gulf of Oman near the eastern entrance of the strait, had initially resisted the proposal but later joined discussions because of the potential economic benefits.

The talks come months after Iran sharply reduced commercial shipping traffic through the Strait of Hormuz following attacks by US and Israeli forces in late February.

The disruption temporarily slowed shipping activity and pushed up energy prices, highlighting Iran’s influence over a maritime route that is vital for global oil exports.

On Wednesday, Iran’s newly created Persian Gulf Strait Authority said it had defined the “management supervision area” for the Strait of Hormuz and added that ships would require permits to pass through the controlled zone.

Iranian state media outlet Press TV separately reported that Tehran was developing a mechanism to regulate maritime traffic and charge vessels for “specialised services”.

Iran has argued that the proposed system would involve fees linked to services provided to ships rather than direct tolls for passage. The distinction is important under international maritime law.

Under the 1982 United Nations Convention on the Law of the Sea (UNCLOS), ships have the right to move through international straits without obstruction, although some service-related charges are allowed under certain conditions.

Iran is not a signatory to UNCLOS, but maritime law experts say many of its navigation principles are widely recognised as customary international law.

James Kraska, a professor of international maritime law at the US Naval War College and visiting professor at Harvard Law School, said the rules governing international straits have been “virtually universally accepted” for decades.

Kraska said reasonable fees could be legal if they directly match services provided to ships, but warned that Iran would face questions over whether the proposed charges are effectively transit tolls under another name.

US President Donald Trump rejected the idea of any Iranian payment system for the waterway and said on Thursday that the Strait of Hormuz should remain open for free international transit.

“We want it free,” Trump said at the White House. “We don’t want tolls. It’s international. It’s an international waterway.”

US Secretary of State Marco Rubio also rejected the proposal. “It can’t happen,” Rubio said. “It would be unacceptable. It would make a diplomatic deal unfeasible if they were to continue to pursue that.”

The reports said Iran is considering different types of charges, including environmental fees, transit-related service charges and payments connected to maritime support operations.

The proposed system could also require vessels to submit operational details such as ownership information, cargo details, crew nationality and insurance documents before passing through the waterway.

References: business-standard, livemint