- Iran is moving to formalize a toll-based regime for ships passing through the Strait of Hormuz, with lawmakers considering legislation to charge transit fees.
- Oman has publicly rejected the concept, stating no transit fees can be imposed and reaffirming free-passage guarantees.
- Traffic through the strait has been severely depressed due to conflict-related factors, with Iran framing tolls as a way to fund security and navigation management.
Iran's Toll Push
Iran has escalated efforts to impose a permanent toll system on vessels transiting the Strait of Hormuz, arguing that shipping firms should contribute to security, navigation management, and pollution control costs. According to people familiar with the matter, Iranian lawmakers are now considering legislation that would formalize transit fees, though the system does not yet exist. Tehran has pitched the plan as a means to finance post-conflict stabilization and broader maritime governance in the strategic waterway.
Traffic through the strait has declined dramatically in recent months due to soaring insurance costs and broader regional tensions, Iran says, but has not stopped. The toll proposal, officials argue, would help monetize and legitimize navigation in a contested security environment.
Oman's Rejection
Oman has swiftly rejected the toll concept. In a statement, Omani authorities said no transit fees can be imposed on ships using the Strait of Hormuz, reaffirming existing arrangements that guarantee free passage under international maritime law. The rebuke creates a potential bilateral friction point between Tehran and Muscat over control of the vital chokepoint.
Industry analysts warn that any unilateral tolling scheme could disrupt global trade flows and set a dangerous precedent for other key waterways. Shipping companies face higher costs or redirected routes if restrictive regimes take hold, potentially affecting freight rates, insurance premiums, and supply chains.
Market and Geopolitical Context
The Hormuz dispute sits at the intersection of security, sovereignty, and international law. With traffic already constrained, broader ceasefire negotiations and U.S.–Iran tensions influence how seriously actors treat the toll proposal. Oil markets remain sensitive to any disruption in the strait, through which about 20% of the world's petroleum passes.
Efforts to reach the Omani government for further comment on Friday were not successful. Iran's foreign ministry did not immediately respond to requests for comment on the legislation's status.