Economy May 21, 2026 10:32 AM

Iran Seeks Permanent Toll on Strait of Hormuz Shipping in Talks With Oman

Tehran proposes fees to cover navigation management and security costs as traffic falls after recent military incidents

By Hana Yamamoto

Iran's ambassador to France says Tehran and Muscat are discussing a plan to institute a permanent payment system for vessels transiting the Strait of Hormuz. The proposal would charge ships fees to fund navigation management, security provision and pollution prevention, with Iran framing the measure as a contribution requirement for beneficiaries of the route.

Iran Seeks Permanent Toll on Strait of Hormuz Shipping in Talks With Oman

Key Points

  • Iran and Oman are reportedly in talks to establish a permanent toll system for ships using the Strait of Hormuz to cover navigation management and security costs - impacts shipping and maritime services sectors.
  • Iran's ambassador said the strait lies in Iranian territorial waters and characterized Iran as responsible for regional security given its extensive coastline - relevant for geopolitical and insurance markets.
  • Maritime traffic has fallen after recent military actions, with some ships suspending operations due to higher insurance costs, although transit has not stopped completely - affects global trade and energy transport.

Iran is engaged in discussions with Oman about creating a standing toll mechanism for vessels traversing the Strait of Hormuz, Iran's ambassador to France, Mohammad Amin-Nejad, said. The proposed arrangement would require ships that use the strait to pay fees intended to defray expenses linked to navigation management and the provision of security services.

In remarks delivered in a Bloomberg interview, Amin-Nejad argued that states and entities that profit from maritime traffic through the strait should help shoulder the costs associated with keeping the waterway operational and safe. He said Iran and Oman must mobilize resources to provide security, manage navigation, prevent pollution, and establish order to reduce disruptions to global trade.

"This will entail costs, and it goes without saying that those who wish to benefit from this traffic must also pay their share," Amin-Nejad said. He stressed that Iran does not currently operate a payment or toll system for the strait.

The ambassador noted the geographic and security rationale Iran offers for the proposal, stating that the Strait of Hormuz lies in Iranian territorial waters and that Iran possesses the longest coastline in both the Persian Gulf and the Sea of Oman. For that reason, he said, Iran bears responsibility for regional security.

Amin-Nejad described the potential charges as intended to be clear, transparent, reasonable, and logical, and said the plan would be consistent with Iran's international commitments. He also highlighted that Iran is not a signatory to the 1982 Montego Bay Convention on the Law of the Sea.

On operational conditions in the waterway, the ambassador pointed to a decline in maritime traffic following recent military actions. He said many vessels have halted operations because of sharply higher insurance costs, though he added that transit through the strait has not ceased entirely.

There has been no public response from Oman on the proposal as of the ambassador's comments.


Contextual note - The proposal as described by Amin-Nejad focuses on funding navigation management, security provision and pollution prevention through fees charged to vessels that benefit from passage. Details on implementation, specific fee levels, and the legal or administrative framework were not provided in the ambassador's remarks.

Risks

  • Uncertainty over Oman's response leaves the proposal's prospects unresolved - implications for shipping and regional coordination.
  • Recent military actions and rising insurance premiums have reduced traffic through the strait, creating volatility for shipping, insurance, and sectors dependent on uninterrupted maritime trade.
  • Iran is not a signatory to the 1982 Montego Bay Convention on the Law of the Sea, which may complicate legal and diplomatic discussions about a toll framework.

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