Oman has rejected an Iranian proposal to impose fees on commercial vessels using the Strait of Hormuz, despite an earlier claim by Iran’s Islamic Revolutionary Guard Corps that the two countries had reached an agreement on sharing revenue from the strategic waterway, according to a New York Post report.A senior regional official told the New York Post that Oman had declined to approve the proposed charges, including fees that would have been collected voluntarily for environmental and security services.The development appears to contradict a statement made previously by an IRGC spokesman, who said agreements had been reached on the two countries’ respective shares of the waterway and its revenues. A US official had previously told the NY Post that the terms of any revenue-sharing arrangement had not even been finalised by Tehran.The Strait of Hormuz, which lies between Iran and Oman, is a crucial route for global oil and gas shipments. Iran has been seeking greater control over arrangements governing the waterway, including a framework that would give it a larger role after the ongoing conflict.Iranian foreign minister Abbas Araghchi and Omani foreign minister Sayyid Badr Albusaidi discussed the strait during a meeting in Tehran last week. Hours later, IRGC spokesman Hossein Mohebbi announced that an agreement had been reached on revenue sharing.Oman’s decision also helps it avoid a direct confrontation with US President Donald Trump, who has threatened military action if Muscat interferes with the US position on the waterway. Trump had warned on August 17 that the US would bomb Oman if it obstructed American efforts involving the strait.Any Iranian-Omani agreement on tolls would also face a practical obstacle because the US has reimposed a naval blockade of Iran, meaning a fee-collection arrangement would be difficult to implement without Washington’s consent, according to the Post.Oman has maintained close ties with the United States while also serving as an intermediary between Washington and Tehran. The Gulf state previously hosted US-Iran nuclear talks and helped broker a May 2025 ceasefire between the US and Iran-backed Houthi movement in Yemen.The New York Post reported that Oman is now backing away from the Iranian proposal as it seeks to support wider diplomatic efforts.