Oman informs allies: Ships traversing the Strait of Hormuz may have to pay a fee.

robot
Abstract generation in progress

According to Bloomberg citing informed sources, Oman has informed European officials that the Strait of Hormuz can no longer return to its pre-war state, and future transiting vessels may need to pay certain fees.

The informed sources said that Omani officials stated the country will always comply with international maritime law, but may charge fees for services related to the Strait of Hormuz in the future, such as pollution control and ship piloting. However, it remains unclear whether Oman indicated that these fees would be mandatory.

The informed sources also said that Oman is studying the management models of other global maritime chokepoints, including the Malacca Strait in Asia. Currently, there is no mandatory shipping toll system in the Malacca Strait.

The United States, Europe, and Oman's Arab neighbors in the Gulf region are increasingly concerned that Oman may establish a fee system for the Strait of Hormuz jointly with Iran.

French President Emmanuel Macron will meet with Oman's Sultan Haitham bin Tariq in Paris on Monday. As the international community intensifies efforts to ensure the continued free navigation of the Strait of Hormuz, the two sides are expected to discuss this issue.

According to a statement from the French presidency, the two leaders will discuss "the issue of maritime route security, which depends on free and unconditional passage through the Strait of Hormuz."

If transit fees are imposed, commodity trading companies will face an additional cost of tens of billions of dollars per year.

The Strait of Hormuz, jointly controlled by Oman and Iran, is one of the most important transportation routes for global oil and liquefied natural gas.

At the end of February, after the United States and Israel began bombing Iran, Iran effectively closed the Strait of Hormuz by attacking and threatening passing vessels. Western countries also stated that Iran likely laid mines in some waters.

As the United States and Iran are currently engaged in peace negotiations, Tehran insists on jointly managing shipping traffic in the Strait of Hormuz with Oman.

If fees are imposed on transiting ships in the future, commodity trading companies and shipping companies could face an additional cost of tens of billions of dollars annually. Multiple countries, including the United States, the United Kingdom, France, Saudi Arabia, and the United Arab Emirates, have warned that such a move would violate international maritime law.

Oman has recently sent mixed signals regarding the future arrangements of the Strait of Hormuz

Oman is an ally of the United States while maintaining close ties with Iran. Due to its long-standing neutral foreign policy and its balancing act in regional conflicts, Oman is often referred to as the "Switzerland of the Middle East." Before the outbreak of the US-Iran war, Oman served as an important mediator between the two sides.

On Tuesday, Oman and Iran issued a joint statement saying they would discuss the operational methods of the Strait of Hormuz and related costs. Just two days later, Oman signed a statement together with the United States and the Gulf Cooperation Council (GCC), explicitly "opposing any transit fees, charges, or attempts to control the Strait of Hormuz."

US Secretary of State Marco Rubio, who is visiting Bahrain, commented on this:

"They said this in the meeting, and they signed that statement, indicating they would not impose any fees or tolls, so I think this is good news."

Omani officials also told European counterparts that they are under significant pressure from Iran. During the previous conflict, Iran launched missiles and drones at multiple locations in the Middle East, including Oman. Although US and Israeli airstrikes have severely weakened Iran's military, Iran remains the most powerful military force in the Persian Gulf region.

Bader Al-Saif, an assistant professor at Kuwait University and an associate fellow at Chatham House, said:

"Oman is caught between Iran and the United States, trying to maintain a delicate diplomatic balance. This strategy has largely worked in the past, but now both sides are at war and constantly trying to pressure each other, and Oman's approach may ultimately cost it dearly."

Iran has previously stated that all ships passing through the Strait of Hormuz must apply for insurance from Iran, and hinted that insurance could still be provided for free for about 60 days.

Most countries believe that ships should be able to pass through the Strait of Hormuz freely without paying any fees

The issue of tolls in the Strait of Hormuz has also become a key point of contention in the negotiations between the United States and Iran over a permanent peace agreement. Rubio said Thursday that if Iran wants to reach a formal peace agreement, it must guarantee that the Strait of Hormuz remains toll-free and that ships will not be charged any fees.

Otherwise, he warned, other countries might follow suit and establish toll systems at other global maritime chokepoints, "and then the global shipping order will be thrown into chaos."

Currently, most countries believe that ships should be able to pass through the Strait of Hormuz freely without paying any fees. This is also the customary practice for most transnational natural maritime chokepoints around the world.

For example, the Malacca Strait is jointly coordinated by Indonesia, Malaysia, and Singapore, and fees are only charged when ships require specific services such as pilotage or security, without a mandatory strait transit fee.

Risk Warning and Disclaimer

        Markets are risky; invest with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at your own risk.
NG0.30%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned