Iran and Oman announced on Tuesday the formation of a joint working group between their foreign ministries to negotiate the future administration of navigation in the Strait of Hormuz, including maritime services and the costs associated with them. The decision, made public after talks in Muscat between Iranian Parliament Speaker Mohammad Bagher Ghalibaf, Foreign Minister Abbas Araghchi, and Oman’s Sultan Haitham bin Tariq and Foreign Minister Badr Albusaidi, directly implements a provision of the US–Iran memorandum of understanding signed the previous week. That MoU, mediated by Pakistan and Qatar, ended the brief war that had closed the strait and established a 60-day toll-free period for negotiations on a permanent framework.

Iranian officials have consistently framed any future charges as “maritime service fees” rather than tolls, asserting sovereign rights over their territorial waters. Ghalibaf stated that fees would only take effect after the 60-day window. Oman’s foreign minister, however, publicly emphasised “toll-free safe passage” and adherence to international law, a stance that appears calibrated to address warnings from Washington. The US has reacted sharply: President Trump threatened to “blow them up” if Oman cooperates with Iran in controlling the waterway, and Treasury Secretary Scott Bessent warned of sanctions against Muscat for facilitating a toll system. The joint statement from Muscat and Tehran stressed that all measures must respect sovereignty and sovereign rights, while also committing to keep the strait open for international navigation.

The working group will consult other littoral states and relevant parties, potentially drawing in Saudi Arabia, the UAE and other Gulf Cooperation Council members. The strait, through which roughly 20% of global crude oil and LNG transits, remains partially restricted: ships are using northern and southern routes through Iranian and Omani waters respectively, while the main central channel is still mined and closed. Maritime tracking data shows traffic has resumed but at roughly half pre-war levels, with many vessels concealing their positions. The MoU obliges Iran to complete demining within 30 days and remove military obstacles. Analysts in London note that the ambiguity between “service fees” and “tolls” could become a flashpoint in the 60-day negotiation window, as any compulsory levy would challenge decades of customary free passage through international straits.

Saudi Arabia and Qatar have publicly endorsed the MoU and the negotiation process. Pakistan, which hosted the initial talks, announced that the strait would return to pre-war conditions without tariffs for the interim period. Viewed from Tehran, the working group with Oman is a step toward institutionalising its role in strait management while avoiding direct confrontation with the US. From Muscat’s perspective, the arrangement allows Oman to uphold its traditional mediating role and protect its sovereignty without triggering American retaliation. The next concrete step is the convening of the joint working group, with discussions expected to begin shortly, while the broader US–Iran final agreement remains under negotiation with a 60-day deadline.