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Iran, Oman propose joint Strait of Hormuz management with fees
🇲🇾 Malaysia /Economy & Trade

Iran, Oman propose joint Strait of Hormuz management with fees

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Iran and Oman have proposed a plan to the United States for jointly managing the Strait of Hormuz, including collecting administrative fees.
  • The proposal, reportedly sent recently, suggests a long-term management solution involving Iran, Oman, and other Gulf states, with funds potentially shared for environmental risk assessment, rescue operations, and technical support.
  • While the US has been consulted, Oman has not yet submitted a formal proposal, and US officials have previously rejected toll systems in the strait.

Iran and Oman have put forward a proposal to the United States for the joint administration of the Strait of Hormuz, a critical global shipping lane. The plan includes the collection of administrative fees by both West Asian nations, according to reports citing three sources.

although Washington has been consulted on potential mechanisms for managing the strait, Oman has not yet presented any formal suggestions.

— a West Asian officialRegarding the joint proposal for managing the Strait of Hormuz.

The proposal was reportedly sent to the U.S. recently. However, one West Asian official indicated that while Washington has been consulted on potential mechanisms for managing the strait, Oman has not yet presented any formal suggestions. Under a memorandum of understanding signed last month, the U.S. and Iran agreed that ships could pass through the strait freely and safely for 60 days, pending a long-term management decision through negotiations among Iran, Oman, and other Gulf countries.

the country supports the implementation of mandatory fees for vessels transiting the Strait of Hormuz.

— Sayyid Badr bin Hamad Al BusaidiOmani Foreign Minister's statement on potential fees for the Strait of Hormuz.

Omani Foreign Minister Sayyid Badr bin Hamad Al Busaidi stated this week that his country supports the implementation of mandatory fees for vessels transiting the Strait of Hormuz. West Asian officials told NBC News that Iran is actively pushing for these payments, believing the U.S. will eventually agree to some form of charge. According to these officials, fees for the Strait of Hormuz would be collected through joint consultations with the international community and the International Maritime Organization (IMO). If agreed upon, the collected funds would be shared between Iran and Oman. These funds could be used for assessing environmental risks, rescue operations, and technical support, similar to models used in the Strait of Malacca.

Iran is actively pushing for these payments and believes the U.S. will eventually agree to some form of charge.

— West Asian officialsDescribing Iran's stance on collecting fees for the Strait of Hormuz.

The officials also noted that Oman has borne the costs of maintaining the Strait of Hormuz for maritime, environmental, and navigational services for years without charging any fees. The new proposal regarding the future of this global commercial shipping route was first reported by The New York Times, citing an Iranian official and four diplomats familiar with the matter. These sources indicated that U.S. negotiators have concerns about the proposal but intend to discuss it with Omani counterparts, believing the issue can be resolved. U.S. officials and President Donald Trump have repeatedly rejected the implementation of a toll system in the strait.

Oman has borne the costs of maintaining the Strait of Hormuz for maritime, environmental, and navigational services for years without charging any fees.

— an officialHighlighting Oman's past contributions to the Strait of Hormuz's upkeep.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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