Middle East — 2026-08-07

Iran-Oman Deal Would Ban US and Israeli Ships From Strait of Hormuz and Impose Tolls

BLUFA finalized Iran-Oman corridor agreement by August 31 is unlikely, as Washington's rejection of any Iranian toll mechanism and IMO opposition create blocking conditions neither bilateral party can resolve alone.

Iran and Oman have agreed on the geographic coordinates for a new shipping corridor through the Strait of Hormuz and are finalizing a joint statement on the arrangement, Iranian foreign ministry spokesman Esmaeil Baqaei said, adding that the process could still be delayed if "certain third parties" interfere 123. Iran's deputy foreign minister, Kazem Gharibabadi, told state media the route would run largely through Iran's territorial waters with some segments in Oman's waters, and that existing temporary routes would close in favor of the new corridor for at least two to four months 3. A draft Iranian text and multiple reports describe the plan as barring US and Israeli vessels, along with other "hostile" states, while introducing a toll or fee system for other ships 14. Iran is pushing for a transit fee of 5 to 7 percent of cargo value while Oman has proposed a lower 3 percent rate, and the draft bill, still under review by an Iranian parliamentary committee awaiting expert recommendations, would fine violating vessels up to 20 percent of cargo value 14. US officials say Washington will not accept any arrangement that leaves Iran in control of the waterway or permits Iranian tolls, and eight major shipping associations have written to the UN and International Maritime Organization opposing any toll scheme as a violation of international navigation norms 3. Iran maintains the strait will not reopen to all traffic until the US lifts its naval blockade of Iranian ports 23.

Analysis
A finalized joint statement spelling out the toll structure by August 31 is unlikely, since Tehran's own spokesman conditions the timeline on unspecified third-party interference while Washington has signaled any Iranian fee mechanism is a redline. Full reopening remains tied to lifting the US naval blockade, a step Washington has not signaled, and eight shipping associations are pressing the IMO to reject tolls outright, adding a veto point outside bilateral control. Confidence in this judgment is low, resting on a single primary account, Fars News's publication of the draft text, with other outlets amplifying the same Iranian foreign ministry statements rather than independently corroborating them. Tehran's public rollout of coordinates and a toll concept ahead of any finalized statement may function as leverage to force the blockade's lifting rather than signal a near-final deal. If the toll provision survives into a final statement, shippers and insurers must price Iranian fees and effective control into Hormuz transit planning; if dropped, current war-risk routing persists unchanged.
4 sources
  1. Iran-Oman Deal Proposes Ban on US, Israeli Ships in Strait of Hormuz - Bloomberg
  2. Iran and Oman close to Hormuz plan but await US agreement - RTE
  3. Hormuz deal 'close': What's the latest on each side's positions? - Al Jazeera
  4. Iran aims to ban U.S. and Israeli ships from Strait of Hormuz and charge others a toll - NPR

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