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Oman Proposes 'Voluntary Fee' for Hormuz Strait Transit Despite Trump Warning

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Oman is proposing a 'voluntary fee' for ships transiting the Strait of Hormuz, modeled after a similar system in the Strait of Malacca.
  • The proposal aims to secure funds for managing the strait's safety and environmental protection.
  • The plan faces uncertainty as the U.S. previously threatened military action over similar proposals, and Iran insists on mandatory payments.

Oman is pursuing a plan to collect fees from vessels passing through the Strait of Hormuz, a move inspired by the revenue-sharing model used in the Strait of Malacca. The proposal, framed as a 'voluntary fee,' aims to generate funds for the management and safety of the crucial waterway.

Free navigation that hinders passage is illegal, but the voluntary fund in the Strait of Malacca is already in existence and has been verified.

— Arsenio DomínguezThe IMO Secretary-General commented on the legality of transit fees and the precedent set by the Strait of Malacca.

According to sources cited by The New York Times, Oman has formally presented its proposal to the United States and other Western allies. The collection method is intended to mirror the 'cooperative fund' established in the Strait of Malacca in 2007, where major users and the maritime industry contribute funds for maintenance, repairs, and salvage operations.

International Maritime Organization (IMO) Secretary-General Arsenio Domínguez acknowledged the validity of voluntary contributions, stating that while mandatory tolls would impede free navigation, the Malacca Strait's fund is "already in existence and has been verified." Oman's Foreign Minister, Badr Albusaidi, echoed this sentiment in a recent interview, highlighting the costs associated with maintaining the strait's safety, preventing pollution, and responding to accidents.

Maintaining the safety of the strait, preventing pollution, and responding to maritime accidents clearly incurs costs. Related countries can voluntarily share costs, referencing existing examples.

— Badr AlbusaidiOman's Foreign Minister referenced the Strait of Malacca model when discussing potential cost-sharing.

However, the U.S. response remains uncertain. Former President Donald Trump previously warned of potential "bombing" if Oman proceeded with discussions on transit fees with Iran. Iranian officials suggest the 'voluntary' nature might be a facade, effectively becoming mandatory. Analysts note that the situation in the Strait of Hormuz has changed significantly since pre-war times, with some attributing the current complexities to the U.S. initiating conflicts.

It will effectively be mandatory.

— Iranian officialSuggesting the 'voluntary' nature of Oman's proposed fee might not be truly optional.

Saudi Arabia's Foreign Minister, Faisal bin Farhan Al Saud, has also voiced opposition, arguing that the Strait of Hormuz should return to its pre-conflict state. Iran, meanwhile, insists on a mandatory payment system and has stated it will proceed independently if Oman does not cooperate. Negotiations between Oman and Iran on managing the strait are expected soon, but reaching an agreement without Oman's full participation will be challenging for Iran.

Whether called voluntary or not, the Strait of Hormuz was completely open before the war, but it is not now. This situation is not Oman's fault, but the responsibility of the United States, which started a foolish war.

— H.A. HellyerAn analyst commenting on the changed situation in the Strait of Hormuz.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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