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European Oil Markets
26JUN

Iran and Oman rule transit fees out

2 min read
14:17UTC

Esmaeil Baqaei said on 10 August that transit fees are not under discussion with Oman, and named the four areas that are: monitoring, environment, maritime services and crime.

EconomicDeveloping
Key takeaway

Iran says no charge for passage is on the table; Oman has said nothing at all.

Iran's foreign ministry spokesman Esmaeil Baqaei ruled transit fees out of the shipping route talks with Oman on Monday 10 August, and named four areas that are under discussion: monitoring, environmental protection, maritime services and crime 1. A joint statement still waits on technical points.

Baqaei first described this bilateral channel in May, when he said the two governments were in continuous consultations following an expert-level meeting in Muscat . Three months on, those four headings are the first content the mechanism has produced in public. Iran and Oman administer the strait between them under a 1968 agreement that predates the UN Convention on the Law of the Sea, which is why a co-signed arrangement carries legal weight that a scheme Tehran writes alone does not.

Ruling out a charge for passage answers the loudest Western objection to anything Iran proposes for the waterway. A toll looks like payment for transit that shipping law does not permit; monitoring, pilotage and pollution rules look like two coastal states doing their jobs. That distinction is the whole argument, and Baqaei has just conceded the point without conceding the strait.

Iranian and Western officials described this same mechanism in incompatible terms on 5 August . Neither Muscat nor Washington has confirmed Baqaei's version, and until one of them publishes something, four headings and a pending joint statement are what exists.

Deep Analysis

In plain English

Iran and Oman sit on opposite shores of the Strait of Hormuz. A route plan needs both states because ships pass through waters near each coast. The four subjects are ordinary shipping tasks, such as tracking vessels and providing maritime services. Saying that fees are off the table does not mean the countries have agreed who makes the rules.

Deep Analysis
Root Causes

Oman controls the southern side of the 33-kilometre strait and has preserved relations with both Tehran and Washington. That geography gives Muscat a role no outside naval coalition can fully replace.

Iran's earlier proposal paired a bilateral protocol with toll collection . Removing fees from the stated agenda lowers a visible commercial obstacle, but it does not settle who controls routing or enforcement.

What could happen next?
  • Meaning

    Iran and Oman have named four administrative tasks that could support a joint route plan.

  • Risk

    The countries have not published a joint text defining enforcement authority or service charges.

First Reported In

Update #168 · Iran replaces the man who set its terms

Islamic Republic News Agency· 11 Aug 2026
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