Trump’s Least Bad Choice: Accept Iranian Service Fees or Keep Hormuz Closed

By Elijah J. Magnier

Donald Trump may eventually accept an arrangement that allows Iran to collect service fees from vessels transiting the Strait of Hormuz. He would not present this as recognition of an Iranian toll or surrender of the principle of free navigation. Washington would likely describe the payment as compensation for specific maritime services jointly provided by Iran and Oman. The terminology would allow the United States to accept an unwelcome reality without formally endorsing Iranian sovereignty over an international passage.

No final agreement has yet been announced. American officials continue to reject the description of the proposed payments as tolls and deny that Iran will be allowed to determine which vessels can pass. Nevertheless, Iran and Oman are discussing an arrangement under which both countries would collect fees for navigation, security and environmental services. Iran would manage inbound traffic through its territorial waters, while Oman would administer the principal outbound route through Omani waters. This is a clear indication that the US has no role in one of the most important chokepoints, the Strait of Hormuz, and that Iran has imposed its upper hand on it.

Iran is also seeking supervision over outbound traffic. Under the reported proposal, vessels leaving the Gulf through Omani waters would remain subject to notification procedures, with Tehran receiving information about their movements and reserving the right to intervene when it considers its security to be affected. Oman would issue the formal clearance, but Iran would not relinquish its claim to a supervisory role.