After U.S.-Iran War, Oman said to propose Hormuz joint fee plan

After U.S.-Iran War, Oman said to propose Hormuz joint fee plan

The New York Times reports:

Iran and U.S.-allied Oman are moving forward with plans to collect payment for ships transiting the Strait of Hormuz, despite public American objections, according to an Iranian official and four diplomats with knowledge of the matter.

If enacted, the plans would be a significant change from the prewar status in the strategic waterway, underscoring how the American-Israeli decision to attack Iran on Feb. 28 has changed the Middle East in far-reaching and unanticipated ways.

Before the war, the Strait of Hormuz was an international shipping route between Iran and Oman that vessels sailed through free, carrying oil and gas from the Persian Gulf to the rest of the world. During the fighting, Iran effectively blockaded the waterway, an important choke point for global trade, sending energy prices skyrocketing.

Since then, Iranian officials have repeatedly declared their intentions to monetize the strait.

Oman recently delivered a formal proposal to the United States and other Western allies that outlined a plan in which shipping companies would pay service fees to use the strait, according to the Iranian official and a regional diplomat.

A person familiar with the U.S. position confirmed that American negotiators had received the Omani proposal and said that they had concerns that they intended to discuss with Omani officials. The officials and diplomats cited in this article all spoke on the condition of anonymity to discuss sensitive diplomacy.

The future of the strait remains a central issue in talks between the United States and Iran to hammer out a lasting peace agreement.

Oman’s proposal is partly modeled on arrangements in the Straits of Malacca and Singapore, an Asian waterway where a private foundation collects voluntary contributions for safe navigation, the regional diplomat said.

Any fees in the Strait of Hormuz would be voluntary, the diplomat said. The Iranian official, however, said that the payments would be obligatory. [Continue reading…]

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