Oman rejects Hormuz fee plan after Trump bombing threat

September 4, 2026 at 06:42 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Oman has refused to approve any fee collection in the Strait of Hormuz, even on a voluntary basis, according to a senior regional official. The decision reverses an earlier announcement by Iran's Revolutionary Guards that revenue-sharing terms had been agreed. It follows U.S. President Donald Trump's threat to bomb Oman if it imposed de facto transit fees.

Key Facts

Oman refused to approve any fee collection in the Strait of Hormuz, even on a voluntary basis, according to a senior regional official.
U.S. President Donald Trump threatened on August 17 to bomb Oman if it imposed de facto transit fees in the waterway.
Iran's Revolutionary Guards spokesman Hossein Mohebbi announced on state channel Sepah News that agreements had been reached on each country's share of the strait waters and on Iran and Oman's share of revenue.
The U.S. Treasury imposed sanctions on the manager of Bank Melli's Dubai branch and cut off transactions with Banque Misr UAE.
The U.S. has sanctioned 154 UAE-based entities in the past year under Operation Economic Outcast.

Oman's Rejection

Oman refused to approve any fee collection in the Strait of Hormuz, even on a voluntary basis, according to a senior regional official. The decision reversed an earlier announcement by Iran's Islamic Revolutionary Guard Corps that revenue-sharing terms had been agreed. A U.S. official said the terms of the revenue-sharing proposal had not been finalized even by Tehran, indicating the Revolutionary Guards had acted prematurely. Oman, which sees itself as a U.S. ally, has acted as a regional mediator, including brokering the May 2025 ceasefire between the U.S. and the Houthis in northern Yemen.

Trump's Threat

U.S. President Donald Trump threatened on August 17 to bomb Oman if it imposed de facto transit fees in the waterway. Trump said, "If Oman gets in the way, we will bomb them severely." The U.S. naval blockade against Iran also invalidates any fee agreement without U.S. approval.

Iran's Announcement

Iran pressed Oman to accept a post-war framework that would give Tehran greater authority over the strategic waterway. Iranian Foreign Minister Abbas Araghchi and Omani Foreign Minister Sayyid Badr al-Busaidi met in Tehran last Tuesday to discuss the waterway. Hours after the meeting, Revolutionary Guards spokesman Hossein Mohebbi announced on state channel Sepah News that agreements had been reached on each country's share of the strait waters and on Iran and Oman's share of revenue. Sources close to the matter said Oman withdrew from the proposal to remain committed to broader peace efforts.