Iran and Oman reveals shocking plan for Strait of Hormuz and oil

Before the war, roughly 135 ships passed through the Strait of Hormuz every day.

Iran claims 26 made it through on May 19 and 20, with help from the Islamic Revolutionary Guard Corps. The gap between those two numbers is the context for everything happening in the strait right now.

On May 20, Tehran made its ambitions for that gap explicit in a way it never had before.

What Iran's ambassador said and the exact quote that matters

Mohammad Amin-Nejad, Iran's ambassador to France, gave an interview to Bloomberg in Paris on May 20 in which he described Iran's discussions with Oman over a permanent toll system for ships transiting the Strait of Hormuz, according to Bloomberg.

"Iran and Oman must mobilize all their resources both to provide security services and to manage navigation in the most appropriate manner," Amin-Nejad said. "This will entail costs, and it goes without saying that those who wish to benefit from this traffic must also pay their share."

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He added that the system would be transparent and framed the demand as conditional on a resolution to the broader conflict.

"And if today there is any desire for the situation to improve, a solution must be found to tackle the root of the problem," Bloomberg confirmed.

Iran is already charging tolls of more than $1 million per ship on vessels that have transited the strait since the crisis escalated, with some reports citing fees as high as $2 million per vessel, according to Insurance Journal.

What Amin-Nejad described is not a new practice but a formalization of what is already happening, which is precisely what makes the announcement significant.

Why a permanent toll system would change the legal and market landscape

The Strait of Hormuz sits between Iran to its north and Oman to the south, connecting the Persian Gulf to the Indian Ocean. Under normal conditions it handles approximately one-fifth of the world's oil and liquefied natural gas supplies, along with other commodities including aluminum and fertilizers.

Under the United Nations Convention on the Law of the Sea, ships have an unambiguous right of transit passage through international straits. The International Maritime Organization made its position explicit on April 9.

"There is no international agreement where tolls can be introduced for transiting international straits. Any such toll will set a dangerous precedent," an IMO spokesperson said, according to Fox News.

Greek Prime Minister Kyriakos Mitsotakis, whose country is the world's leading shipping power, said it was "completely unacceptable." Trump has said he wants the waterway "open, free, with no tolls," Fox News confirmed.

Iran's position is that the toll is a legitimate service charge for navigation management and security, framed as compensation for the country's role in maintaining the strait.

Supporters of the plan inside Iran have argued it institutionalizes what they describe as sovereign responsibility over a vital maritime corridor. The legal fight matters because it will shape how shipowners, insurers, and governments respond.

If the toll is treated as legally illegitimate, countries may resist openly. If it becomes an enforced reality, even temporarily, it will still alter shipping routes and oil pricing.

Oman's position and why it will determine whether the plan succeeds

Oman did not respond to requests for comment following Amin-Nejad's interview. That silence is itself significant. Oman shares the Strait of Hormuz with Iran and has historically served as a diplomatic back channel between Tehran and the West.

Any perception of Omani cooperation with a toll system would represent a major shift in the country's carefully maintained balancing role, Bloomberg confirmed.

Earlier in the crisis, Oman rejected Iran's toll proposal on the grounds that it was incompatible with international maritime law. If that position has softened, it would substantially legitimize Tehran's framework.

If it has not, the proposal remains difficult to implement in any formal bilateral structure, since Iran cannot unilaterally impose a permanent administrative system that requires Oman's geographic participation.

Iran is also conditioning any reopening of the strait on the US agreeing to lift its naval blockade of Iranian ports. That demand creates a circular dynamic: the strait stays effectively closed until conditions are met that require a US policy reversal, which the US is not signaling.

In the meantime, Iran is using the toll discussion to signal that its preferred outcome is not simply reopening but restructuring who controls and benefits from the passage.

Key figures on the Strait of Hormuz toll proposal and market impact:

• Pre-war transit volume: approximately 135 ships per day; Iran claims 26 ships transited May 19-20 with IRGC assistance, far below pre-war levels, according to Bloomberg
• Current toll levels: Iran already charging more than $1 million per ship, with some reports citing up to $2 million per vessel, according to Insurance Journal
• Strait significance: handles approximately one-fifth of global oil and LNG supplies; also carries aluminum, fertilizers, and other commodities, according to TTNews
• IMO position: "There is no international agreement where tolls can be introduced for transiting international straits. Any such toll will set a dangerous precedent," said April 9, according to Fox News
• Trump position: wants the strait "open, free, with no tolls," Bloomberg confirmed
• Iran's condition: refusing to fully reopen until the US lifts its naval blockade of Iranian ports, TTNews noted

What the toll proposal means for energy markets and investors

For oil markets, the toll discussion adds a structural dimension to what has been primarily a geopolitical risk premium. Temporary blockades and security concerns create short-term price spikes.

A permanent fee system, if formalized, would represent a lasting increase in the cost of moving oil out of the Persian Gulf, affecting tanker economics, insurance premiums, and ultimately crude prices.

Shipping companies and refiners are already pricing in elevated political risk on Hormuz routes. A formalized toll structure would not necessarily resolve that uncertainty but would change its nature, replacing unpredictable closure risk with predictable but contested fees.

Whether that is a better or worse situation for markets depends on whether the fees are eventually recognized as legitimate or continue to be resisted by the international community.

The larger signal for investors is that Iran is not simply trying to reopen the strait on pre-war terms. Tehran is attempting to use the crisis to permanently alter the governance of one of the world's most important energy corridors.

Whether it succeeds depends on Oman, the US, and the international community's willingness to treat the toll as either a legal reality or an enforceable illegality. That question does not have a clear answer yet, and that uncertainty alone is enough to keep the Hormuz risk premium elevated for the foreseeable future.

Related: Bank of America sees writing on the wall for Strait, oil prices

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This story was originally published May 23, 2026 at 7:07 AM.