"No Tolls Can Be Imposed For Crossing Hormuz": Oman Contradicts Iran's Demand

Iran, in its 10-point-ceasefire proposal, had a provision allowing both Tehran and Muscat to levy a transit fee on ships passing through the Strait of Hormuz. However, Oman contradicted Iran's demand and said, "No tolls can be imposed for crossing Hormuz."

According to Oman's Transport Minister, the Sultanate has signed agreements guaranteeing that no fees will be imposed on ships crossing the Hormuz Strait. The minister emphasised Oman's commitment to ensuring free and safe navigation at the strategic chokepoint.

The 34-kilometre strip of water between Iran and Oman has been considered an international waterway, with neither country having levied a toll in the past. The narrow mouth of the Persian Gulf facilitates roughly one-fifth of global oil trade.

Iran stated that the money collected by ships will be used for post-war reconstruction, as the conflict has caused widespread destruction to the country's defence, administrative, and civilian infrastructure.

What Is Iran Proposing?

Iran wants any permanent peace deal in the war that began with US and Israeli strikes on its leadership on February 28 to allow Tehran to demand fees for ships passing through the strait, a senior Iranian official has told Reuters.

The fee would vary depending on the type of ship, its cargo and unspecified other prevailing conditions, the official said, without elaborating.

Iran's deputy foreign minister Kazem Gharibabdi said last week that Tehran was drafting a protocol with Oman to require ships to obtain permits and licences to pass the Strait, saying this move was intended to facilitate rather than restrict transit.

At the time, Oman said it had held talks with Iran on options to ensure smooth transit but did not say if any agreements had been reached.