Oman-Iran Hormuz Working Group Emerges as US Rejects Tolls and Traffic Rebounds

Perspective Analysis

The formation of an Oman-Iran joint working group on Strait of Hormuz navigation marks a notable step toward localized management of one of the world’s most vital energy chokepoints, even as Washington and Tehran continue to spar over questions of authority and fees.

This development follows the June 14 Islamabad Memorandum of Understanding between the United States and Iran, which included a clause committing Tehran to 60 days of toll-free safe passage for commercial vessels once obstacles are cleared. The telephone call between Iranian Foreign Minister Abbas Araghchi and his Omani counterpart Badr Albusaidi on June 25 built directly on earlier talks in Muscat, producing agreement to establish the working group aimed at future administration, services, and costs in line with international law.

Oman’s position as a neutral facilitator has proven central. The sultanate, sharing coastline with Iran along the strait, has consistently framed its role around supporting safe navigation without imposing transit fees, a stance reinforced in Albusaidi’s remarks at a Gulf Cooperation Council meeting in Bahrain. Iranian state media highlighted the bilateral coordination and the welcome extended to the Muscat consultations, underscoring Tehran’s preference for dealing directly with littoral states rather than external powers.

Daily Sabah captured the operational rebound underway. Vessel traffic through the strait rose sharply after months of disruption that began with Iran’s March 1 closure in response to prior U.S.-Israeli actions. Analytics from Kpler recorded at least 70 crossings on one recent Wednesday—the highest daily total since the shutdown—with 56 commodity vessels, including oil and gas tankers, among them. Dry-bulk traffic reached 2025 levels on the same day according to AXSMarine. Officials noted the increase remains roughly half peacetime norms, with many ships using varied routes and lingering confusion over corridors. Some of the estimated 11,000 seafarers stranded in the Gulf have begun exiting under a U.N.-led evacuation plan that started the previous week.

China Daily placed the same events squarely within the broader U.S.-Iran strategic contest. It reported U.S. Secretary of State Marco Rubio’s firm rejection of any tolls on the international waterway during his Gulf visit, echoing President Donald Trump’s statement that no fees, insurance costs, or other charges were being sought or received by Iran. The outlet also noted the U.S. Senate’s 50-48 approval of a war-powers resolution intended to limit military action against Iran, describing it as a symbolic but telling check on executive moves. In this framing, the Oman-Iran working group appears as one arena where sovereignty assertions by the coastal states intersect with Washington’s insistence on unrestricted freedom of navigation.

Euronews emphasized the resulting confusion over control. Reports highlighted Iran’s warning that vessels crossing without authorization would be dealt with, alongside U.S. and Gulf state positions rejecting any attempt to assert unilateral authority or impose fees. The coverage underscored how disagreement between Washington and Tehran over the strait’s governance continues to generate uncertainty for shipping despite the de-escalation steps.

Middle East Monitor provided the most detailed account of the formal mechanism. It quoted the Omani foreign ministry statement on the establishment of the joint working group between the two foreign ministries, tasked with reaching agreement on navigation management, associated services, and costs according to international standards. The report tied this directly to clause 5 of the Islamabad MOU, which calls for Iran-Oman dialogue on administration in coordination with other Gulf states. It also noted the 60-day commitment to safe, toll-free passage and Iran’s pledge to conduct mine-clearing within 30 days where needed. Emphasis was placed on language affirming the coastal states’ sovereignty and sovereign rights over their territorial waters.

Across these accounts, a shared factual core emerges: Oman and Iran are advancing bilateral coordination on temporary and longer-term measures following U.S.-Iran de-escalation, with traffic already recovering and no tolls in the immediate picture. Regional outlets such as Muscat Daily and Middle East Monitor treat the strait primarily as a manageable local issue requiring littoral-state leadership. Others, including China Daily and Euronews, portray it as the latest theater of great-power friction, where U.S. rejection of Iranian or joint control claims keeps tensions alive.

Gulf states have voiced support for the coordination while stressing adherence to the U.N. Convention on the Law of the Sea. European minesweepers are en route to assist clearance, and shipping companies report gradual normalization. Yet selective permitting on northern routes and the use of multiple exit paths signal that full restoration of pre-March patterns remains incomplete.