Oman rules out transit fees in Strait of Hormuz despite ceasefire proposal
Oman has said it will not impose the $2mn transit fees on vessels passing through the Strait of Hormuz that were part of the two-week ceasefire deal agreed on April 7, reaffirming its adherence to longstanding international agreements governing one of the world’s most strategically important shipping routes.
The country’s transport minister stated that Muscat had signed agreements prohibiting charges on ships passing through the waterway, pushing back against reports that Oman and Iran could introduce transit fees under a proposed ceasefire arrangement.
The clarification follows claims by a regional official that a two-week ceasefire plan under discussion could allow both Iran and Oman to levy charges on vessels using the strait. Iran was expected to channel any such revenues towards reconstruction efforts, according to the same official.
Prior to the ceasefire, Iran suggested that it share supervision of the Strait together with Oman, which has been largely neutral in the conflict and acted as a key mediator.
The Strait of Hormuz, which connects the Gulf to the Arabian Sea, handles roughly a fifth of global oil consumption and has historically been treated as an international waterway where transit passage is open to anyone and not subject to tolls. The EU has pointed out that charging fees to transit through territorial waters is illegal under maritime law, where the right of innocent passage grants free access to any non-military ship.
Unlike Iran, which controls the northern coastline, Oman has traditionally aligned itself with international legal norms governing freedom of navigation.
Analysts say any move to introduce transit fees will politicise the strait and the international energy market, particularly given the strait’s critical role in oil and liquefied natural gas flows from Gulf producers to Asia and Europe.
Oman’s rejection of the proposal signals that, at least for now, the status quo governing passage through the Strait of Hormuz will remain intact, preserving a key principle of global maritime trade.
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