Iran and Oman have agreed to establish a joint working group to negotiate the future administration of navigation in the Strait of Hormuz, including maritime services and the costs associated with them. The decision, announced in a joint statement after talks in Muscat on 23 June, follows the signing of a US-Iran memorandum of understanding (MoU) last week that ended a military confrontation which began with US-Israeli strikes on 28 February and reopened the strategic waterway to commercial shipping.

Tehran has repeatedly stated it intends to impose what it calls maritime service fees for passage through the strait after a 60-day grace period stipulated in the MoU. Iranian officials frame the charges as an exercise of sovereign rights over territorial waters. Muscat, which shares the strait’s coastline, has publicly committed to “toll-free safe passage,” according to Foreign Minister Badr Albusaidi, while also emphasising its sovereign rights. Viewed from Washington, any fee structure is unacceptable; President Donald Trump has threatened to “blow up” Oman if it cooperates with Iran on controlling the waterway, and Treasury Secretary Scott Bessent has warned of sanctions against Muscat.

The working group, composed of officials from both foreign ministries, is mandated to reach agreement on future navigation management, services, and costs in accordance with international standards, and to consult other littoral states and relevant parties. The move appears to implement a provision of the MoU that calls for Iran to discuss the strait’s governance with Oman and other Gulf coastal states. The strait, through which roughly 20 per cent of global crude oil and liquefied natural gas transits, was effectively closed by Iran after the February strikes, and the US subsequently blockaded Iranian ports. The MoU, mediated by Pakistan and Qatar, provided for the strait’s reopening and set a 60-day roadmap toward a final agreement, including the eventual lifting of sanctions.

Saudi Arabia and Qatar have expressed support for the MoU and the ongoing negotiation process. The joint Omani-Iranian statement stressed the importance of de-escalation, regional stability, and adherence to international law. The working group’s formation signals a diplomatic mechanism to manage a potential flashpoint, but the divergence between Iran’s fee plans and Oman’s toll-free commitment, combined with firm US opposition, leaves the future framework uncertain. The group is expected to begin its consultations shortly, while the 60-day charge-free period remains in effect and broader US-Iran negotiations continue.