World

Iran's post-war Hormuz fee plan gets Oman's support despite US objection, says report

Iran's post-war Hormuz fee plan gets Oman's support despite US objection, says report

Oman has reportedly lent its support to impose a fee on vessels using the Strait of Hormuz despite the Donald Trump administration's very public opposition to the plan, earlier proposed by Iran. According to a New York Times report, US and Iran ally Oman is moving forward with plans to collect payment for ships transiting the Strait of Hormuz.

The US and Iran agreed to an interim deal earlier this month that calls for Tehran to dilute its stockpile of enriched uranium. It also waives US-backed oil sanctions on Tehran, calls for free traffic through the Strait of Hormuz, and gives each side 60 days to hammer out broader agreements.

According to the report, Oman recently delivered a formal proposal to the United States and other Western allies that outlined a plan in which shipping companies would pay service fees to use the strait.

American negotiators had received the Omani proposal and said that they had concerns that they intended to discuss with Omani officials. The officials and diplomats cited in this article all spoke on the condition of anonymity to discuss sensitive diplomacy.

If approved, this would be the biggest consequence since US impounded Iran on February 28.

A fifth of the world's oil was shipped through the Strait of Hormuz before the war began, Iran’s attacks, and US blockade stopped cargo ships and tankers from moving through the Strait of Hormuz, creating a global energy crisis.

According to the NYT report, Oman's proposal draws inspiration from the Straits of Malacca and Singapore, where a private foundation receives voluntary contributions to support safe navigation.

Under the Omani proposal, shipping companies would make payments for services related to navigation through the Strait of Hormuz. However, there remains uncertainty over whether those payments would be voluntary or compulsory.

A regional diplomat cited by The New York Times said the fees would be voluntary, while an Iranian official maintained that payments would be mandatory.

The proposal to impose a fee on ships using the Strait of Hormuz has reportedly been shared with the US and several Western governments, with American negotiators raising concerns that they intend to discuss further with Omani officials.