Oman has rejected Iran's plan for the two countries to charge fees for ships that transit the Strait of Hormuz, the New York Post reported.
According to a high-ranking official, Oman has refused to exact fees from ships, despite Iranian claims in recent weeks that the countries are in agreement on the plan.
Iran has been attempting to secure an agreement with Muscat to jointly control the Strait of Hormuz for months, after Tehran shut down shipping in the Strait.
Last month, MS NOW reported that the blueprint of the Iran-Oman agreement designates separate navigational corridors. Commercial ships entering the Persian Gulf would navigate via an Iranian-supervised lane, whereas outgoing maritime traffic would utilize an Omani-controlled route.
US President Donald Trump has warned Oman not to enter into an agreement with Iran to control the Strait of Hormuz.
“I don’t think (Oman) behaved very well, but we’d handle them very easily just like we do others," Trump told reporters in the Oval Office in mid-August.
Relations between Washington and Muscat have deteriorated in recent months. Omani Foreign Minister Badr al-Busaidi, who had helped mediate US-Iran discussions before the war, has repeatedly criticized the US decision to launch the conflict.
Secretary of State Marco Rubio has repeatedly warned that Iranian tolls on the Strait of Hormuz would constitute a red line for the administration and could establish a dangerous precedent for other strategic waterways.