Iran, Oman to levy fee on ships passing through Hormuz; Here's how vessels will be charged: Report
The Strait of Hormuz, a 34-km-wide chokepoint, handles roughly one-fifth of the world's oil trade and has never carried a toll in its history as an international waterway
- Apr 8, 2026,
- Updated Apr 8, 2026 9:30 AM IST
Iran, Oman to levy fee on ships passing through Hormuz; Here's how vessels will be charges: Report
For decades, the Strait of Hormuz has been free to navigate. That may be about to change. The two-week ceasefire framework agreed between the United States and Iran includes a provision allowing both Iran and Oman to collect transit fees from ships passing through the strait.
Strait of Hormuz, a 34-km-wide chokepoint, handles roughly one-fifth of the world's oil trade and has never carried a toll in its history as an international waterway.
Both the US and Iran agreed to the ceasefire early Wednesday, ending a 40-day conflict that had effectively shut down the strait since hostilities began on February 28. The closure, punctuated by repeated attacks on vessels attempting to transit the route, had sent global oil prices sharply higher. Under the agreement, Tehran has conditionally agreed to reopen the waterway, but not without conditions attached.
Iranian officials told news agency AP that revenue collected from the transit fees would be directed toward post-war reconstruction, as the conflict has left widespread damage across the country's defence, administrative, and civilian infrastructure.
Agreeing to the ceasefire, US President Donald Trump indicated that Iran had put forward a proposal that gave him reason for optimism. "We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate. Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two-week period will allow the Agreement to be finalised and consummated," he said, without elaborating on the specific points under discussion.
How will Iran, Oman charge ships?
According to Reuters, the transit fee structure would vary based on the type of vessel, its cargo, and other prevailing conditions. Iran's Deputy Foreign Minister Kazem Gharibabadi said last week that Tehran was working with Oman to draft a protocol governing the fees, framing the move as one intended to facilitate passage rather than obstruct it.
Not everyone is convinced. Gulf nations including the United Arab Emirates and Qatar have pushed back against the proposal, calling for free and open navigation and arguing that any discussion of financial mechanisms should be deferred.
The legal picture is also complicated. Under the United Nations Convention on the Law of the Sea, bordering states cannot demand payment simply for granting passage through a strait. They may, however, impose limited charges for specific services, such as piloting, tugging, or port assistance, provided these are not applied more heavily against vessels from any particular country.
Further negotiations on the long-term future of the Strait of Hormuz and other outstanding issues from the conflict are expected to be taken up in talks between the US and Israel, scheduled to begin in Islamabad on Friday.
Iran, Oman to levy fee on ships passing through Hormuz; Here's how vessels will be charges: Report
For decades, the Strait of Hormuz has been free to navigate. That may be about to change. The two-week ceasefire framework agreed between the United States and Iran includes a provision allowing both Iran and Oman to collect transit fees from ships passing through the strait.
Strait of Hormuz, a 34-km-wide chokepoint, handles roughly one-fifth of the world's oil trade and has never carried a toll in its history as an international waterway.
Both the US and Iran agreed to the ceasefire early Wednesday, ending a 40-day conflict that had effectively shut down the strait since hostilities began on February 28. The closure, punctuated by repeated attacks on vessels attempting to transit the route, had sent global oil prices sharply higher. Under the agreement, Tehran has conditionally agreed to reopen the waterway, but not without conditions attached.
Iranian officials told news agency AP that revenue collected from the transit fees would be directed toward post-war reconstruction, as the conflict has left widespread damage across the country's defence, administrative, and civilian infrastructure.
Agreeing to the ceasefire, US President Donald Trump indicated that Iran had put forward a proposal that gave him reason for optimism. "We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate. Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two-week period will allow the Agreement to be finalised and consummated," he said, without elaborating on the specific points under discussion.
How will Iran, Oman charge ships?
According to Reuters, the transit fee structure would vary based on the type of vessel, its cargo, and other prevailing conditions. Iran's Deputy Foreign Minister Kazem Gharibabadi said last week that Tehran was working with Oman to draft a protocol governing the fees, framing the move as one intended to facilitate passage rather than obstruct it.
Not everyone is convinced. Gulf nations including the United Arab Emirates and Qatar have pushed back against the proposal, calling for free and open navigation and arguing that any discussion of financial mechanisms should be deferred.
The legal picture is also complicated. Under the United Nations Convention on the Law of the Sea, bordering states cannot demand payment simply for granting passage through a strait. They may, however, impose limited charges for specific services, such as piloting, tugging, or port assistance, provided these are not applied more heavily against vessels from any particular country.
Further negotiations on the long-term future of the Strait of Hormuz and other outstanding issues from the conflict are expected to be taken up in talks between the US and Israel, scheduled to begin in Islamabad on Friday.