The New York Post reported Thursday, 12 Shahrivar, citing a senior regional official that Oman has rejected the Islamic Republic’s proposal to share the costs of services from commercial ships transiting the Strait of Hormuz.

The official said Muscat has not agreed—even to receive the costs voluntarily—for environmental and security services from the ships.

A U.S. official also told the New York Post that the terms of the proposed deal between the Islamic Republic and Oman for final revenue sharing have not been finalized. The remarks were made while Hossein Mahbi, a spokesperson for the Islamic Revolutionary Guard Corps, had previously announced that Tehran and Muscat had reached an agreement in this regard.

Reuters had reported on 7 Mordad that Oman presented a plan supported by Gulf countries to the Islamic Republic in which management of the Strait of Hormuz would be carried out regionally, and shipping companies could voluntarily pay amounts to cover navigation costs, environmental protection, and search-and-rescue operations. Oman had previously also opposed mandatory charges for ships transiting this waterway.