Iran’s Dollar‑Per‑Barrel Toll Proposal Strains Oman’s Position in Hormuz Standoff

Oman’s Musandam peninsula borders the southern edge of the strait, giving it a direct stake in any decision about its use. Since the blockade began, Muscat has stayed publicly silent on Iran’s toll plan while officials have held quiet talks with Tehran. Western diplomats warn that turning a service charge into a compulsory toll would undermine the principle of free passage and could prompt legal challenges.

Abbas Araghchi, Iran’s foreign minister, told an audience in India that the strait sits in the territorial waters of Iran and Oman with no international waters in between. Iran intends to levy roughly one dollar for each barrel of oil carried by a vessel transiting the waterway. The waterway usually handles about one‑fifth of the world’s seaborne oil traffic but has remained closed for ten weeks following the February US‑Israeli attack on Iran.

If Iran enforces the fee, ships would need to open rial accounts, a step strictly likely barred by UN sanctions that prohibit funds reaching the Islamic Revolutionary Guard Corps. The United States has warned that paying an illegal toll would not guarantee safe passage, suggesting possible naval interference with compliant vessels. France and the UK are pushing an alternative freedom‑of‑navigation framework backed by most Gulf states, and the coming weeks will reveal whether Oman aligns with Iran, backs the Western plan, or pursues a third‑party mediation, all while regional naval activity remains under close watch.