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Oman Reportedly Proposes Voluntary Payment System for Strait of Hormuz

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, The New York Times reported yesterday, citing an Iranian official and four diplomats “with knowledge of the matter,” all unnamed. The Times comments that 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.”

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, the Times report continues. 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.

Oman’s proposal is said to be 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.

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