Oman Rejects Iran's Joint Fee Proposal for Hormuz Ships - Report

Implications for markets:

The reported refusal introduces another complication to the delicate arrangement managing traffic through the Strait of Hormuz, a channel that handles about one-fifth of the world's oil and LNG trade. If it proves true, it indicates that the post-conflict framework established under the US-Iran memorandum for governing the strait is still not settled, even as the 60-day safe-passage period created by that deal winds down. Some observers are cautious about relying heavily on this report given that it is based on a single unnamed official, but if confirmed, it would substantially complicate the full-reopening scenario that supports bearish medium-term forecasts such as Citi's, and would keep a risk premium in prices for longer than that forecast currently assumes. The claim comes from one unnamed source and has been picked up by outlets including TASS, but has not been independently verified by Reuters, AP, or an official statement from Oman, so its impact on markets should be approached with caution.

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A report sourced from a single individual, now also circulated by TASS, says Oman has quietly backed away from an Iranian fee plan for Hormuz, adding uncertainty to an already fragile waterway governance framework.

Overview:

• Citing an unnamed high-ranking regional official, the New York Post says Oman turned down Iran's plan for the two countries to jointly impose fees on ships moving through the Strait of Hormuz.
• This goes against a statement from last week by Iran's Revolutionary Guard Corps that a fee-sharing agreement was already in place.
• The report adds that the fee details had not been settled even from Iran's perspective, implying the IRGC's announcement outpaced the real negotiation progress.
• Other media, including Russian state-owned TASS, have since recirculated the report without adding any fresh independent confirmation.
• Oman's foreign minister had earlier made a distinction: Muscat opposes required tolls, but is open to a voluntary contribution model akin to the Strait of Malacca system.
• The fee issue is part of the wider US-Iran memorandum, which ensured safe passage through Hormuz for 60 days while Iran, Oman, and other Gulf countries negotiated the waterway's longer-term management.
• President Donald Trump has twice warned he would bomb Oman should it accept what he considered an indirect toll on the strait.

Based on a New York Post article quoting an unnamed high-ranking regional official, Oman has quietly turned down an Iranian plan for joint fee collection on commercial ships passing through the Strait of Hormuz. The article says Muscat rejected fees even under a voluntary arrangement for environmental and security services, undercutting the IRGC's earlier assertion that a fee-sharing deal had been reached.

The same report indicates that the specifics of any revenue-sharing arrangement were not even completed on the Iranian side, with another source saying the IRGC's public announcement ran ahead of the actual negotiation status. The fee disagreement forms part of a larger and still-unresolved structure for strait management. A memorandum of understanding signed last month by the US and Iran assured vessels safe passage through Hormuz for 60 days, with the longer-term waterway governance to be developed by Iran, Oman, and other Gulf nations.

Oman's stance on fees has evolved in tone more than in substance over recent months. Foreign Minister Sayyid Badr al-Busaidi had earlier differentiated between compulsory tolls (which Muscat rejects) and a voluntary contribution system like the one in the Strait of Malacca, where Indonesia, Malaysia, and Singapore ask shipping firms to fund navigation, environmental, and search-and-rescue services without a mandatory fee. That prior willingness to consider a voluntary model highlights the significance of the reported rejection, indicating Oman has stepped back even from the milder form of a fee arrangement.

Politically, Oman has cause to avoid public association with any Iran-related toll plan. President Donald Trump has twice said he would bomb Oman if it accepted what he called a de facto toll on the strait, and Washington has separately indicated that any Iranian fee on Hormuz would be considered a red line.

The story has since spread further, with Russian state-owned TASS repeating the claim but without contributing any independent reporting. Because the information traces to a single unnamed official, and TASS's coverage does not count as independent verification, the story should be considered reported but not confirmed. No independent confirmation from Reuters, AP, or an official Omani government statement has appeared.

Oman is located on the southern coast of the disputed Strait of Hormuz.