Iran, Oman to impose tariffs on Strait of Hormuz despite US objections
Despite strong US objections, Iran and Oman are planning to jointly impose a “service tax” or tariff on ships passing through the Strait of Hormuz, one of the world’s most important commercial waterways. The New York Times reported on Tuesday (June 29) citing an Iranian official and four diplomats that the two countries are taking the step.
A 14-point agreement signed between the US and Iran earlier this month said that commercial ships would be able to safely pass through the Strait of Hormuz without any tariffs during a 60-day negotiation period. However, as part of that agreement, Iran and Oman are obliged to develop a joint long-term plan. The tax or toll is planned as part of a post-war regional trade model that completely contradicts centuries-old rules of free navigation.
Sources said Oman wants to keep the tax “optional”, but Iran has taken a firm stance on making it “mandatory”. Muscat wants to use the money to cover the costs of maintaining safe navigation in the Strait of Hormuz, similar to the regime in the Straits of Malacca or Singapore. However, Iran’s deputy foreign minister warned on Monday that Tehran would impose the tax unilaterally even if there is no joint agreement with Oman. Oman is trying to find a middle ground or alternative path to avoid such a unilateral and mandatory decision by Iran. Meanwhile, Washington has reacted sharply to Oman’s possible move. Last month, US President Donald Trump even threatened a military strike on Oman. Trump made it clear that if Iran and Oman try to impose any kind of tax in the Strait of Hormuz, Oman will be “blown up”. According to Trump, the strait is an international waterway and it will be open to all, no one can take control of it. US diplomats have struggled to maintain bilateral ties after the US president’s harsh remarks. However, in a secret meeting with US Treasury Secretary Scott Besant, Omani diplomats later assured that they have no plans to impose tariffs on the Strait of Hormuz.
Source: Middle East Eye
