Iran Claims Understanding with Oman on Hormuz Fees — Muscat Denies

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Author: Khaled Aziz

In Brief

Iran and Oman have publicly contradicted each other over the future of the Strait of Hormuz after a newly formed joint committee met in Muscat. Iran’s Deputy Foreign Minister Kazem Gharibabadi said the sides reached an understanding on a fee system for vessels transiting the strait and that technical committees would be formed under Article 5 of the Islamabad Memorandum of Understanding, while Oman said no future arrangements will include transit fees, though talks on optional navigational services may continue. Iran distinguishes between denied “transit tolls” and “navigational service fees,” but Washington rejects that distinction. Secretary of State Marco Rubio said Iran will not be allowed to impose fees or tariffs on transiting vessels under any final agreement. Tehran has announced a 60-day exemption during negotiations, but has signaled the fee system could resume if no deal is reached.

Full Article

The latest Iran and Oman are publicly contradicting each other over the future of the Strait of Hormuz. After the first session of a newly formed Iran-Oman joint committee in Muscat, Deputy Foreign Minister Kazem Gharibabadi said the two sides had reached an understanding on a fee system for transiting vessels. Oman denied it the same day.

Details

• Gharibabadi said the Muscat meeting produced a shared understanding on collecting fees from ships passing through the strait, and that joint technical and specialist committees would be established under Article 5 of the Islamabad Memorandum of Understanding signed June 18. • Oman's Foreign Minister al-Busaidi said the opposite: any future arrangements will not include transit fees, though discussions on optional navigational services remain open. • Iran draws a distinction between "transit tolls" — which it denies — and "navigational service fees" covering pilotage assistance, insurance, and environmental protection. Washington rejects the distinction, saying the charges function as tolls regardless of their label. • Secretary of State Marco Rubio said Iran will not be permitted to impose any fees or tariffs on vessels transiting the strait under any final agreement. • Tehran announced a 60-day exemption during the ongoing negotiating period, but has signaled the fee system will resume once the window closes if no deal is reached.

What to watch

The 60-day window is the real deadline. If talks with Washington fail to produce a final agreement, Iran has threatened to move forward with fees unilaterally — a move that risks direct confrontation with the United States and Gulf states over one of the world's most critical shipping lanes.

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