Oman proposes voluntary fees for the Strait of Hormuz
Oman has presented Iran with a Gulf-backed plan for voluntary fees to use the Strait of Hormuz, modeled after the Malacca Strait, in an effort to ease tensions with the United States. Iran has not yet officially responded, but discussions are ongoing.
Oman proposes voluntary fee plan for the Strait of Hormuz
Context of the conflict
The Strait of Hormuz, a strategic passage for one-fifth of the world's oil and liquefied natural gas production, has been at the center of a conflict between the United States and Israel against Iran since February 28, 2026. A partial agreement last month allowed for a temporary reopening, but tensions resumed in early July after Iranian strikes against ships using a channel not approved by Tehran.
Washington seeks to restore the previous status quo, where ships could navigate freely without payment. Iran, however, demands to co-manage the strait with Oman and collect fees for its use. The United States considers these mandatory fees illegal.
The Omani proposal
Oman has presented Iran with a Gulf-backed plan to manage the Strait of Hormuz. This plan involves collecting voluntary fees, inspired by the model used in the Strait of Malacca. In Southeast Asia, Indonesia, Malaysia, and Singapore request voluntary contributions from ships to fund navigation, environmental protection, and search-and-rescue operations.
A Western diplomat compared this system to a voluntary carbon tax for air travel, where passengers can choose to pay to offset their emissions. According to sources, Iran would not have exclusive control over the strait under this framework.
The foreign ministers of the Gulf Cooperation Council discussed on Tuesday, July 28, 2026, ways to intensify cooperation to ensure the freedom and security of ships in this maritime route.
Reactions and positions of the parties
Iran has not yet officially responded to the Omani proposal. Omani officials met with their Iranian counterparts in Tehran over the weekend of July 26 and 27, 2026.
It reportedly threatened to resume strikes if negotiations with Iran did not succeed, while also stating that "good discussions" were underway. Iran, for its part, denies seeking to resume negotiations with the United States.
Tehran rejected a U.S. proposal to use frozen Iranian assets to compensate damaged ships. Iranian authorities warned that any country or company accepting these payments would be denied passage through the strait.
Prospects and stakes
President Trump expressed optimism about the possibility of an agreement to end the conflict while maintaining the threat of resuming strikes. Iran stated it would cease its attacks as long as Washington did the same, but drones were reported in Jordan, Saudi Arabia, and northern Iran on Monday, July 27. Jordan shot down another drone on Tuesday, July 28.
Key Points
- Oman proposes a voluntary fee plan for the Strait of Hormuz, inspired by the Strait of Malacca model.
- Iran demands mandatory fees, while the United States considers them illegal.
- Gulf states support the Omani proposal to ensure freedom of navigation.
- Tensions persist despite discussions between Oman, Iran, and the United States.
- Iran has threatened to deny passage to ships accepting U.S. payments.
Sources
- SCMP World - "Oman offers Iran Gulf-backed plan for voluntary fees to use Hormuz". (secondary)
- Channel News Asia - "Oman presents Iran with Gulf-backed plan for voluntary fees to use Hormuz". (secondary)
- The Hindu World - "Oman presents Iran with Gulf-backed plan for voluntary fees to use Hormuz". (secondary)
- Daily Sabah - "Oman presents Iran with Gulf-backed plan for voluntary Hormuz fees". (secondary)
- News24 SA - "News24 | Oman presents Iran with Gulf-backed plan for voluntary fees to use Hormuz". (secondary)
Transparency: 5 sources (0 primary, 5 secondary). Verification: July 29, 2026.
Truthyx - July 29, 2026