Iran, Oman discuss Strait of Hormuz payment system despite US warning against shipping fees
&imwidth=600&imheight=450&format=webp&quality=medium "Iran, Oman discuss Strait of Hormuz payment system despite US warning against shipping fees")
Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman’s northern Musandam Peninsula on May 17, 2026. Photograph: (AFP)
Iran and Oman are reportedly discussing a new payment framework for ships passing through the Strait of Hormuz, triggering US concerns over sanctions and maritime control.
Iran and Oman are holding bilateral talks to establish a payment system for the ships passing through the Strait of Hormuz, despite explicit warnings from the US. The New York Times reported that the proposed framework aims to permanently monetise and manage traffic through one of the world's most vital energy choke points, which is shared by the territorial waters of the two nations. The US and Iran are engaged in diplomatic negotiations to end the war, but the discussion between Iran and the US allies suggests that they are not close to reaching an agreement. Since the US-Israeli war on Iran, the vital chokepoint has been controlled by Iran, which has led to a decrease in the traffic across the Strait.
“We want it free,” US President Donald Trump said on Thursday, speaking in the Oval Office. “We don’t want tolls. It’s international. It’s an international waterway.”
Service fee vs toll
According to a report by the New York Times, which cites two people familiar with the discussions over the management of the waterway, said that the management system does not include a toll system for transit, but is a service fee for providing services to the vessel. This has created a legal loophole, as under the UN Convention on the Law of the Sea (UNCLOS), direct transit tolls on international straits are illegal, but charging for rendered services is selectively permitted.
Iran has already formed the Persian Gulf Strait Authority (PGSA) to formalise the service fees. The operators are required to submit an extensive 40-question vetting form detailing ownership, cargo, crew nationalities, and insurance before paying the fee. On May 21, PGSA, in a social media post, shared the details of the Strait area, which is under its supervision.
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There are discussions about sharing the fee with Oman, while previous reports suggested that Oman was hesitant to this, but the recent development suggests Oman is considering a viable solution. The US Office of Foreign Assets Control (OFAC) issued compliance warnings. Any commercial marine firm or secondary insurer passing through the Strait of Hormuz and making payments would attract US sanctions
