Oman Tells Western Allies That Ships Crossing Hormuz Will Have To Pay Service Fees

Oman told European countries that ships passing through the Strait of Hormuz might have to pay a service fee, adding that there is no way of going back to the pre-war status quo with Hormuz.

This announcement has concerned the West which fears that Oman along with Iran might set up a tolling system or a fee system for ship crossings through the vital energy corridor which handles one-fifth of the global oil and gas shipments.

French President Emmanuel Macron will meet with Oman’s Sultan Haitham bin Tariq, in Paris on Monday to discuss the future of the waterway.

“Oman is caught between a rock and a hard place trying to maintain a balancing act between Iran and the US,” said Bader Al-Saif, an assistant professor at Kuwait University and associate fellow at Chatham House.

He added that while this has worked in the past, now that both countries are at war with each other, Oman will be forced to pick a side.

Though Oman is an ally of the U.S, it also maintains good relations with Iran. The country had mediated between both the warring parties before the war began.

Omani officials also told their European counterparts that they are being pressured by Iran to set up a service fee for Hormuz crossings.

Given that the Islamic Republic has fired on several gulf neighbours, calling them an ally of the US, and housing its military bases, Oman fears that Iran might attack it too, if the government disagrees with Iranian leadership.

In the past few weeks, Oman sent mixed signals about its stance. On Tuesday, it published a statement with Iran stating that both countries would discuss the management of Hormuz and take advice from Gulf neighbours in the matter.

Two days later, it signed a statement from the US and Gulf Cooperation Council that “rejected any tolls, fees, or attempts to assert control over the Strait.”

According to sources, Oman is studying chokepoints across the world, including the Malacca Strait in Asia, a waterway where there are no compulsory shipping charges.

Oman is analyzing systems used for chokepoints across the globe, including the Malacca strait in Asia, said the people, an area where there are no mandatory shipping charges.

However, any fees for ships could cost commodity traders and shippers tens of billions of dollars every year.