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Market Chatter: Iran, Oman Discuss Permanent Strait of Hormuz Shipping Toll System

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Iran is in discussions with Oman to establish a permanent toll system that would formalize its control over maritime traffic through the Strait of Hormuz, Bloomberg reported on Thursday, citing the country's ambassador to France.

The initiative follows the closure of the key chokepoint amid the ongoing conflict in the Middle East. The disruption has choked global energy flows and sent oil prices soaring amid mounting inflationary fears.

"Iran and Oman must mobilize all their resources both to provide security services and to manage navigation in the most appropriate manner," Ambassador Mohammad Amin-Nejad told Bloomberg in an interview in Paris on Wednesday.

"This will entail costs, and it goes without saying that those who wish to benefit from this traffic must also pay their share," Amin-Nejad said through an interpreter, adding that any future system would be transparent.

The Hormuz connects the Persian Gulf to the Indian Ocean. It traditionally handles about 20% of the world's oil and liquefied natural gas supplies, as well as other commodities such as aluminum and fertilizers.

Iran has refused to fully reopen the strait until the US lifts its naval blockade on Iranian ports. The confrontation has reduced traffic from a pre-war average of 135 ships per day to a fraction of that figure.

Though Amin-Nejad claims that 26 tankers and vessels transited the Strait between Tuesday and Wednesday with the assistance of the Islamic Revolutionary Guard.

Shipping companies say the primary deterrents are not just exorbitant insurance premiums, but the immediate threat of drone strikes, missile attacks, and sea mines. Most international shipping lines have suspended transits until a formal peace agreement is reached.

The prospect of a permanent Iranian-administered toll system has drawn criticism from Western countries and Gulf Arab neighbors, who maintain that the Hormuz must be treated as international waters under maritime law.

Sultan Al Jaber, the managing director and CEO of Adnoc Group, said on Wednesday that formalizing such control would establish a perilous geopolitical double-standard.

"Once you accept that a single country can hold the world's most important waterway hostage, freedom of navigation as we know it is finished," Al Jaber said. "If we do not defend this principle today, we will spend the next decade defending against the consequences."

President Trump has issued conflicting signals regarding the developments, shifting from initial suggestions that the US could levy its own transit fees to warnings that Tehran "better not be" considering a toll system. Trump also floated the possibility of a US-Iran joint venture to manage the strategic waterway.

Despite the diplomatic pushback, Iran has already begun implementing an expanded jurisdictional framework over the waterway.

Vessels transiting the Hormuz are now required to collaborate with a newly established entity called the Persian Gulf Strait Authority. Ships have reportedly faced payment demands reaching up to $2 million for safe passage in some instances.

Iran's Ministry of Foreign Affairs did not immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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