Oman Proposes Voluntary Fee Plan to Manage Strait of Hormuz

The Government of Oman has proposed a joint regional management mechanism for the Strait of Hormuz to end disruptions caused by the ongoing U.S.-Israeli war against Iran. Modeled after the Strait of Malacca, the Gulf-backed plan suggests a system of voluntary fees from shipping companies to fund search and rescue, environmental protection, and navigation, rather than mandatory tolls. This compromise aims to address Iranian demands for transit fees while respecting international maritime law regarding free navigation.

Iran initially engaged in constructive talks regarding the proposal in Tehran but ultimately rejected the plan as unrealistic, alleging that the U.S. and Saudi Arabia pressured Oman to advance it. Iranian Deputy Foreign Minister Kazem Gharibabadi proposed instead a temporary arrangement granting Iran greater control over traffic and explicitly rejected the International Maritime Organization's Traffic Separation Scheme, citing national security concerns following February 28 strikes on Iranian targets.

Simultaneously, Donald Trump paused a 13-night bombing campaign in Iran after military commanders advised it had reached its limit of effectiveness. While Trump described very friendly negotiations between Washington and Tehran, he warned that strikes would resume if a deal is not reached. The U.S. and Oman have both rejected Iranian demands for mandatory tolls, with Secretary of State Marco Rubio asserting that no country has the right to charge for international waterways. Tensions remain high as U.S. Central Command continues to intercept Iranian ballistic missiles and Iran-backed Houthis have targeted Saudi Arabian oil infrastructure.