Oman and Iran are engaged in joint talks to establish a new maritime security order for the strategically vital Strait of Hormuz, raising concerns in the oil market:
Oman, known as the "Switzerland of the Middle East," remains one of the few countries trusted by both Washington and Tehran:
Analysts indicate that Oman appears to be employing a degree of "strategic ambiguity" as it navigates Iran's demands for a tolling system while the U.S. insists this should not happen:
Oman has stated that any agreement will comply with international law, although the prospect of a financial system on a waterway that typically handles around 20% of the world's oil has sparked alarm:
Can Oman charge fees in the Strait of Hormuz?
Analysts told CNBC that Oman's ability to impose service fees sits within tight legal limits, given that the strait is governed by the principle of transit passage:
If Gulf nations and important international actors greenlight Oman, the country would likely move forward with a kind of fee service system:
Oman's position between Iran and Washington
The U.S. has staunchly opposed any tolls in the Strait of Hormuz:
U.S. President Donald Trump's administration has previously threatened to "aggressively" impose sanctions against Oman if it was seen to help Iran establish a tolling system:
Oil markets' 'blind spot'
Neil Quilliam, an energy policy, geopolitics, and foreign affairs specialist, noted that Oman has influence over the rules, procedures, and future arrangements governing the Strait of Hormuz:
"Markets tend to price disruption risk but pay less attention to governance risk. That creates a blind spot," he said:
