Oman is resisting pressure from the United States to sever its links with Iran, maintaining that its negotiations with Tehran focus solely on a future management system for the Strait of Hormuz that adheres to international law. The sultanate aims to implement any new regime only after consulting the United Nations' International Maritime Organization (IMO).
Oman's Neutral Stance Under Scrutiny
Traditionally, Oman has acted as a neutral back-channel mediator in regional disputes, a role that has set it apart from other Gulf states. However, its neutrality has limits: it has been highly critical of Israel's disregard for international law and recently condemned Iranian attacks on Bahrain and Kuwait.
Last week, US President Donald Trump made off-the-cuff remarks threatening to bomb Oman, thrusting the sultanate into the spotlight. During testimony before the Senate Foreign Affairs Committee, US Secretary of State Marco Rubio confirmed Washington's suspicions, stating, "There isn't a country on Earth other than Iran – and maybe Oman that flirted with it – who's in favour of what Iran is doing in the straits."
Diplomatic Efforts to Reassure Washington
Oman has sought to avoid a public confrontation with Trump. In calls with US Treasury Secretary Scott Bessent and meetings at the State Department, Omani Ambassador Talal bin Suleiman al-Rahbi assured US officials that the sultanate opposes any system of tolls and remains committed to the principle of freedom of navigation.
Iran has indicated it is willing to ensure shipping returns to pre-war levels within a month as part of any agreement to reopen the Strait of Hormuz. However, it has also established the Persian Gulf Strait Authority (PGSA), now sanctioned by the US Treasury, through which vessels must seek permission to transit.
Iran's Proposed Fee System
To align with international law and gain Omani support, Iran is proposing a non-discriminatory fee for ships passing through the strait. Arman Khorsand, head of Iran's Department of Environment Center for International Affairs, argued that the goal is to secure resources for addressing environmental damage caused by US military operations, which he says have undermined the principle of innocent passage.
Other Iranian voices, such as economist Saeed Laylaz, urge caution, warning that direct income from the strait could provoke joint coalitions against Iran. Deputy Speaker of Parliament Ali Nikzad noted efforts to merge three draft laws defining the government's maritime regime.
International Legal Perspectives
IMO Secretary General Arsenio Dominguez told the UN Security Council on April 27 that "there is no legal basis for any country to introduce payments or impose tolls, fees, or any discriminatory conditions on international straits." Despite this, some Omani politicians have expressed sympathy for charging for specific services.
Mohammed Suleiman Tamim al-Hinai, a member of Oman's Shura Council, stated that Oman respects international maritime law and does not impose transit fees, but provides services like protection, rescue, and navigation support. The US remains suspicious that Oman is privately planning a fee system indistinguishable from tolls.
PGSA and US Sanctions
The PGSA has published figures showing over 300 shipping companies have applied for permits, with the main destinations being Asian countries, particularly China and India, and the UAE for incoming vessels. US attacks on Iranian radar aim to deprive Iran of surveillance tools needed to enforce its policing of the strait.
The US Treasury clarified on May 29 that US citizens are prohibited from receiving services from the Iranian government, including safe passage guarantees. Under the UN Convention on the Law of the Sea, coastal states may regulate passage for safety, environmental, and maritime order reasons, and may impose charges for specific services, provided they are transparent and non-discriminatory.
US suspicions about Oman date back to when Foreign Minister Badr al-Busaidi appeared on US television just before the launch of the Israeli-US war, pleading for more time for talks. Oman had been mediating and indicated an agreement was within reach.
