Inside Oman's Rejection of Iran's Strait of Hormuz Transit Fee Proposal Amid US Pressures

The Sultanate of Oman firmly rejected a request from Iran to jointly impose service fees on commercial vessels navigating the Strait of Hormuz. According to a senior regional official who spoke to the New York Post on Friday, Muscat's refusal was driven by a desire to steer clear of any confrontation with Trump over tariffs, especially following threats of military action.

The official noted that Muscat declined to agree to any fee imposition—even on a voluntary basis for environmental and security services provided to ships. This stance directly contradicted a prior announcement by the Iranian Revolutionary Guard Corps (IRGC) claiming that a revenue-sharing agreement for the Strait had been reached. Furthermore, a US official pointed out that the details of this revenue-sharing proposal had not even been finalized in Tehran, indicating premature announcements by the IRGC.

Trump had previously issued strong warnings, threatening to bomb Oman should it agree to what he termed de facto shipping fees in the Strait. With the reinstatement of a US naval blockade against Iran, any transit fee agreement would ultimately be rendered meaningless without explicit US approval.

Despite its status as a US ally, Muscat has consistently played a crucial mediating role in regional crises. This includes hosting nuclear talks between Washington and Tehran to avert ongoing conflict and previously brokering the release of Americans held by the Huthis in Yemen, alongside a lasting US-Huthi ceasefire agreement in May 2015.

In the wake of these developments, Iran has intensified pressure on Oman—situated on the southern coast of the Strait of Hormuz—to accept post-war arrangements that would expand Tehran's influence over the vital trade route. Iranian Foreign Minister Abbas Araqchi met with Omani counterpart Badr al-Busaidi in Tehran to discuss the matter. Shortly after, Revolutionary Guard spokesperson Hossein Mohebi claimed agreements were finalized regarding water and revenue shares, though sources close to the talks confirm Oman is distancing itself from the proposal to protect regional peace efforts.