Iran Now Trying To Cement Long-Term Control Over Strait Via Fees

Summary

Iran is pursuing a long-term strategy to establish formal control over the Strait of Hormuz by negotiating a joint fee-collection arrangement with neighboring Oman, despite strong opposition from the United States. Rather than implementing a straightforward tolling system — which would violate international law — Iran and Oman are framing the arrangement as charges for maritime services rendered to vessels, a legally significant distinction that could provide cover for the scheme. Iran has further escalated its territorial ambitions by formally declaring a "management supervision area" over the Strait through its newly created Persian Gulf Strait Authority, claiming jurisdiction that extends into the coastal waters of the UAE and Oman. U.S. Secretary of State Marco Rubio firmly rejected any Iranian payment scheme on the Strait, warning that allowing it would set a dangerous global precedent, while also revealing that NATO allies are developing contingency plans in case Iran refuses to reopen the waterway entirely. Meanwhile, the conflict's broader impact continues to reverberate globally, with Japan preparing to receive its first oil tanker to transit the Strait since the war began, illustrating the difficult economic and diplomatic pressures facing nations dependent on the passage.