Oman Presents Iran With Gulf-Backed Plan For Voluntary Strait Of Hormuz Transit Fees

Oman has presented Iran with a Gulf-backed proposal to jointly manage the Strait of Hormuz, including voluntary contributions from ships using the strategic waterway, in an effort to restore commercial shipping after months of disruption caused by the U.S.-Israeli war on Iran.

The proposal, confirmed by a Gulf source and a Western diplomat on Tuesday, is aimed at helping reopen one of the world’s most important energy routes.

Before the conflict, about one-fifth of global oil and liquefied natural gas (LNG) shipments passed through the Strait of Hormuz, making its security vital for global trade and energy supplies.

Iran, Gulf states and the United States remain divided over how the Strait of Hormuz should be managed. Oman is trying to bridge those differences, but Washington opposes any transit fees.

A U.S. official said on Tuesday the Strait of Hormuz is an international waterway that should remain free from Iranian control or restrictions. The official added that any agreement being discussed does not include tolls or transit fees.

The talks come after U.S. President Donald Trump said there were “good talks” with Iran, days after calling off a two-week U.S. bombing campaign. He warned that the United States would resume strikes if negotiations failed.

Iran has denied seeking to resume talks with Washington but has said it would hold fire as long as the United States does the same. Despite that, military tensions continued across the region.

U.S. Central Command said Iran launched multiple ballistic missiles in an attempted surprise attack on U.S. forces in the Middle East on Tuesday, adding that all of the missiles were intercepted.

Saudi Arabia also said its air defences intercepted and destroyed several drones targeting oil facilities after they were launched from Iraqi territory by Iran-backed militias, Defence Ministry spokesperson Turki al-Maliki said.

Drone attacks were also reported in Jordan, Saudi Arabia and northern Iran on Monday, while Jordan reported shooting down another drone on Tuesday.

Iran Seeks Greater Role

Iran has argued that the Strait of Hormuz cannot return to its pre-war operating system and says it should play a larger role in managing vessel traffic because of security concerns.

Iran effectively closed the strait to foreign shipping after the United States and Israel attacked on Feb. 28, allowing only Iranian vessels to pass.

A deal reached last month between Washington and Tehran partially reopened the waterway, but the agreement collapsed in early July after Iran fired on ships using a navigation channel it did not approve.

Deputy Foreign Minister Kazem Gharibabadi said Iran has proposed managing one direction of shipping through its side of the strait, while Oman would oversee part, but not all, of the opposite direction.

He said Tehran rejected an earlier Omani proposal to divide shipping responsibilities equally because it did not address Iran’s security concerns until long-term regional stability is restored.

Gharibabadi also said the Strait of Hormuz would remain closed if Oman rejected Iran’s proposal.

He added that Iran no longer recognises the International Maritime Organisation’s Traffic Separation Scheme (TSS), saying most of the route lies within Omani waters.

According to Gharibabadi, the TSS is currently not being used because of concerns over mines. Ships are instead using Iran’s northern route and Oman’s southern route.

Oman’s Proposal

Under Oman’s proposal, Iran would not have sole control of the Strait of Hormuz and any payments made by ships would be voluntary, according to the Gulf source and the Western diplomat.

The proposal is similar to the system used in the Strait of Malacca, where Indonesia, Malaysia and Singapore invite ships to make voluntary contributions to support navigation, environmental protection and search-and-rescue operations.

The Western diplomat compared it to voluntary carbon offset payments offered to airline passengers.

The Gulf source said Omani officials met Iranian officials in Tehran over the weekend and that Iran had not formally responded to the proposal as of Monday evening.

Iranian Foreign Minister Abbas Araqchi discussed the Strait of Hormuz with his Omani and Saudi counterparts on Monday, according to Iran’s Foreign Ministry. Tehran said he called for regional cooperation to restore stability and remove insecurity caused by U.S. actions.

Shipping Risks Continue

Foreign ministers from the Gulf Cooperation Council held a video meeting on Tuesday to discuss the conflict and ways to improve cooperation on the safety and freedom of navigation through the Strait of Hormuz, Qatar’s Foreign Ministry said.

Iran’s joint military command also rejected a proposal by Trump to compensate ships damaged during the conflict using frozen Iranian assets.

State media reported that Iran warned any country or company accepting such payments would be denied passage through the Strait of Hormuz by its armed forces.

Regional shipping risks have also increased in the Red Sea.

Iran-aligned Houthi forces in Yemen declared a blockade of Saudi ports on the Red Sea on July 20.

Late Tuesday, the Houthis said they fired ballistic missiles at a Saudi oil tanker and claimed the vessel was forced to turn back.

U.S. Bombing Campaign

Trump said he ended the latest U.S. bombing campaign after military commanders advised that the operation had achieved its objectives. The 13-night campaign killed many people in Iran and destroyed bridges, tunnels and military targets in the country’s south.

Iran responded by attacking U.S. bases in neighbouring countries, killing four U.S. service members, and striking civilian infrastructure in Gulf states, saying the attacks were retaliation for U.S. strikes on civilian targets.

Speaking to Fox News before meeting Israeli Prime Minister Benjamin Netanyahu in Washington, Trump said he preferred a negotiated settlement but was ready to order more strikes if talks failed.

He also repeated his threat to target Iran’s fortified Pickaxe Mountain facility near one of Tehran’s main nuclear sites. “If we don’t make a deal, we’ll take it out very easily,” Trump said.

Iran maintains that it has not sought new negotiations with the United States and accuses Washington of violating the framework agreed last month for talks aimed at ending the conflict.

Although Israel took part in the initial bombing campaign, it has not participated in later peace talks. Relations between Trump and Netanyahu have recently become strained.

Oil prices fell sharply after Trump announced the end of the bombing campaign over the weekend. Brent crude futures dropped about 8% on Monday and extended losses on Tuesday, trading more than 5% lower at below $84 a barrel.

References: Reuters, News18