Oman Says "No Transit Fees for Hormuz"... Joint Pressure from US and Gulf States
Rubio: "Unacceptable Under Any Agreement"
Control Over Strait of Hormuz Emerges as New Issue in Iran Negotiations
Oman, a coastal state bordering the Strait of Hormuz, has announced that it will not impose any transit fees on vessels passing through the strait in the future. As Iran has raised the possibility of levying transit fees or charges under the pretext of managing the Strait of Hormuz and providing maritime services, and with the United States and Gulf countries all expressing strong opposition, the issue of control over the Strait of Hormuz has emerged as a key point in the ceasefire negotiations with Iran.
According to Bloomberg and other sources on June 25 (local time), Omani Foreign Minister Badr Albusaidi said at a meeting in Manama, Bahrain, attended by U.S. Secretary of State Marco Rubio and foreign ministers from Gulf countries, "No future actions regarding the strait will ever include the imposition of transit fees."
This position from Oman is at odds with Iran's assertions. Iran has argued for imposing charges on commercial vessels passing through the Strait of Hormuz 60 days after a follow-up ceasefire agreement with the United States, in return for providing safety, navigation, environmental, and insurance services. Previously, on June 23, Iran and Oman announced in a joint statement after a high-level meeting that they were jointly reviewing the imposition of transit service fees for the Strait of Hormuz.
Secretary Rubio also made it clear that imposing transit fees for the Strait of Hormuz would not be accepted under any agreement. After meeting with foreign ministers of the Gulf Cooperation Council (GCC) in Bahrain, he said, "Whether you call it a transit fee or a charge, it is merely a play on words. Such conditions will not be accepted in any agreement."
He warned that if Iran imposes costs on vessels passing through the Strait of Hormuz, the global maritime order could be disrupted. Secretary Rubio stated, "If such a method is allowed, every country near a waterway will try to do the same, which will ultimately lead to confusion."
The United States and the GCC also stated in a joint statement that they support free and unconditional navigation in the Strait of Hormuz and oppose any attempt to impose transit fees, charges, or unilateral control over the strait. Secretary Rubio added that Oman also joined this joint statement, calling it "good news."
However, Iran maintains that it will continue related discussions. Iranian Foreign Minister Abbas Araghchi, after speaking with Minister Albusaidi, posted on X that they had a "productive conversation" and that both countries, together with neighboring states, are firmly committed to continuing the discussions. He added that a meeting would be held regarding regulations for the management of the Strait of Hormuz and maritime services.
The Strait of Hormuz is a critical passageway for the global transportation of crude oil and liquefied natural gas (LNG). The United States is seeking follow-up negotiations to end the war with Iran, but control over the strait and the issue of transit fees have become major variables in reaching a final agreement. The United States and Iran have completed the first round of negotiations and will hold further talks in Switzerland next week.
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Anxiety over the safety of the strait continues. Although the United States stresses that the Strait of Hormuz remains open, the UK Maritime Trade Operations reported on the same day that a vessel passing through the strait was struck by an unidentified projectile. Previously, it was reported that some cargo ships attempted to enter the strait but turned back along their route.
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