Sultanate of Oman has reportedly reconsidered a proposed joint venture with Iran to impose transit fees on ships in the Strait of Hormuz following stern warnings from the United States. Tehran and its regional proxies have offered only muted expressions of solidarity with Muscat in the face of these threats.
The situation escalated after U.S. President Donald Trump publicly threatened to "blow up" Oman if it proceeded with a plan, reportedly discussed with Iran, to levy fees on vessels transiting the crucial waterway. Trump stated, "The strait will be open for everybody. It's international water, and Oman will do well like everybody else, or they will be blown up. They understand that, and they will be fine."
These remarks were followed by a warning from U.S. Treasury Secretary Steven Mnuchin, who declared that the U.S. government would not tolerate any attempt to establish a fee system in the Strait of Hormuz. Mnuchin specifically cautioned Oman, stating that the Treasury Department would aggressively target any entities involved in facilitating such fees and would impose sanctions on cooperating partners, urging all nations to reject any Iranian efforts to disrupt international trade and navigation.
U.S. media reports had previously indicated that Iran was in discussions with Oman regarding the establishment of a permanent fee system for maritime traffic through the Strait of Hormuz. These reports suggested that the proposed fees were not strictly for passage but might be linked to services provided to ships, and that Oman, initially hesitant, had later engaged in discussions about potential revenue sharing.
Official statements from both Oman and Iran following the U.S. threats offered conflicting narratives. Iranian Foreign Minister Mohammad Javad Zarif, in a post on X, stated he had expressed Iran's solidarity with Oman against any threat and discussed the future management of the Strait of Hormuz in line with sovereign responsibilities and international law. Conversely, Oman's state news agency reported that the Omani Foreign Minister and his Iranian counterpart emphasized their commitment to ensuring freedom of maritime navigation and security in the Strait of Hormuz, in accordance with their sovereign responsibilities over their territorial waters and international law, preserving the interests of all regional and international parties.
This apparent divergence was further underscored by a statement from the U.S. Treasury Secretary, who reported that the Omani Ambassador in Washington had informed him that Oman would not participate in any fees or measures in the Strait of Hormuz. Observers view Oman's withdrawal from the Iranian scheme as a pragmatic response to the significant U.S. threats, contrasting with the limited support offered by Tehran and its allies, such as the Houthi movement in Yemen, which issued a statement condemning the U.S. threats and including a single paragraph of solidarity with Muscat.
