Iran and Oman negotiate new management fees for the strategic Strait of Hormuz

On Tuesday, Iran and Oman launched talks to establish a joint authority that would charge maritime service fees to ships passing through the Strait of Hormuz.

The proposal aims to generate up to $40 billion annually by taxing the world’s most critical oil chokepoint under the guise of security and environmental services. While Iran’s Revolutionary Guard warns it will deal with unauthorized vessels, Oman recently clarified it does not support traditional transit fees to avoid upsetting global markets. The U.S. government has rejected the plan, calling it an illegal revenue scheme even as regional neighbors like Qatar attempt to mediate.

Negotiators from across the Persian Gulf are scheduled to meet in Switzerland later this month to finalize the waterway's post-war transit rules.