Iran and Oman Negotiate Toll for 20% of World's Oil Supply

Iran and Oman are in negotiations to establish a permanent toll for commercial ships passing through the Strait of Hormuz, a move that threatens to institutionalize the disruption that has roiled energy markets since Iran effectively closed the waterway in February.

"Iran and Oman must mobilize all their resources, both to provide maritime security and to manage the shipping network in the most appropriate way," Mohammad Amin-Nejad, Iran's ambassador to France, said in a public statement.

The strait is a critical artery for the global economy, carrying approximately 20% of the world's crude oil and liquefied natural gas (LNG) supply before the conflict. Since Iran began restricting passage in response to a U.S.-Israeli attack, global oil prices have remained volatile, with the U.S. and China both engaging in high-level talks to ensure the strait remains open.

The formalization of a toll represents a significant escalation, potentially adding a permanent risk premium to oil prices and granting Tehran substantial leverage. This comes as peace talks with the U.S. remain deadlocked over Iran's nuclear program and its stockpile of uranium enriched to 60%, with any agreement seen as a long shot by analysts.

A New Toll on Global Trade

Tehran’s move to create a permanent toll mechanism follows months of heightened tension and sporadic military action in the Gulf. Iran shut the waterway in late February after U.S.-Israeli attacks, leading Washington to impose its own naval blockade on Iranian ports in April. According to U.S. Central Command, its forces have redirected 70 commercial vessels and disabled four others to enforce the blockade.

While a temporary ceasefire has been in place since April 8, the situation remains volatile. Recent days have seen an Indian-flagged vessel sunk by a suspected drone strike and another ship seized and steered toward Iran, according to the UK Maritime Trade Operations.

Iran has established what it calls the "Persian Gulf Strait Authority" to manage transit, requiring ships to submit detailed cargo and ownership information to apply for a permit. While most traffic has been halted, some vessels have been granted passage under special agreements. On Wednesday, about 30 vessels, including a Chinese tanker, transited the strait after China's President Xi Jinping discussed the issue with U.S. President Donald Trump.

Digital Chokepoint

Tehran's ambitions may not be limited to maritime shipping. Iranian lawmakers have also discussed plans to charge annual fees to tech companies like Google, Meta, and Microsoft for the five major subsea fiber-optic cables that run through the Strait of Hormuz. These cables carry an estimated 99% of international internet traffic, connecting Europe with key markets in India, the Gulf, and Southeast Asia.

"The Strait of Hormuz is not just an energy chokepoint," Mostafa Ahmed, a senior researcher at the Al Habtoor Research Center, told TIME. "It is one of the world’s most critical digital bottlenecks."

While Iran has not yet passed legislation, state-linked media has argued it has the sovereign right to impose fees on cables within its territorial waters. Any disruption could have a cascading effect on the global economy, impacting everything from financial transactions and cloud computing to the multi-billion-dollar AI infrastructure investments being made by Gulf states like the UAE and Saudi Arabia. The move mirrors the strategy on shipping, creating a dual threat to both physical and digital global commerce.

This article is for informational purposes only and does not constitute investment advice.