Iran rejected an Omani proposal for joint oversight of the Strait of Hormuz on Tuesday, putting forth its own counterproposal as U.S. airstrikes continued for a tenth consecutive night. The diplomatic deadlock over the vital energy corridor leaves global oil shipping largely stalled amid rising casualties and ongoing regional retaliation.
The diplomatic push to reopen the critical energy shipping route hit a wall on Tuesday after Iran rejected a proposal from Oman for joint regional management of the Strait of Hormuz. Before the conflict began in late February, roughly one-fifth of the world’s oil and liquefied natural gas supplies passed through the narrow waterway. Tehran closed the strait shortly after U.S.-Israeli attacks commenced, prompting a corresponding U.S. blockade on Iranian ports.
An interim memorandum of understanding signed on June 17 was supposed to restore uncharged shipping for at least 60 days. Instead, vague wording fueled disagreements over operational control and designated transit lanes. That friction triggered renewed U.S. airstrikes and retaliatory Iranian strikes on US military assets and infrastructure in the region, shattering the temporary truce and leaving maritime traffic at a standstill.
Dueling Proposals Over Control of the Waterway
Oman, situated directly across the strait from Iran, put forward a plan modeled on the Strait of Malacca agreement. The Omani framework envisioned a 50-50 split in regional control, with voluntary fees collected from transiting commercial vessels to fund navigation, environmental protection, and search-and-rescue operations. Under that design, inbound ships would enter through Iranian waters while outbound traffic exited through Omani lanes.
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“Oman proposed to us the creation of a route in the Strait of Hormuz, with 50 percent of it located in our territorial waters and 50 percent in Omani territorial waters. The route for ships to pass through the Strait of Hormuz could involve entering through our waters and exiting through Omani territorial waters.”
Donald Trump seeks help in Strait of Hormuz. Allies say no | US-Iran war | Crude oil
Kazem Gharibabadi, Deputy Foreign Minister of Iran
Iranian Deputy Foreign Minister Kazem Gharibabadi announced Iran’s rejection of the Omani plan during a state broadcast on Tuesday, citing national security concerns. Tehran countered with a demand for more control of the waterway. The Iranian counterproposal stipulates that one route would lie entirely within Iranian territorial waters, while a second lane would feature partial Iranian oversight. According to officials, the arrangement would allow Tehran to monitor both inbound and outbound traffic effectively. Gharibabadi warned that the waterway will remain closed if Oman rejects the Iranian counterplan and insisted that pre-war arrangements allowing toll-free passage will not return.
The military escalation has exacted a human toll. Nearly 100 U.S. service members have sustained injuries since early July, primarily minor concussions, according to Pentagon statements. Concurrently, U.S. forces mourned the deaths of service members killed in drone and missile attacks on a base in Jordan, alongside another fatality resulting from a controlled detonation of downed Iranian ordnance in Iraq.
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Retaliation has not been confined to American assets. The British military’s United Kingdom Maritime Trade Operations center reported that a commercial tanker came under attack early Tuesday in the strait off Oman, forcing the crew to abandon the vessel. Iran’s paramilitary Revolutionary Guard claimed responsibility for that incident as well as two other attacks on ships Monday in the waterway. Meanwhile, allied nations across the Gulf absorbed incoming fire: Kuwait’s air defenses fired at an incoming barrage, Jordanian forces shot down three Iranian missiles, and Bahrain’s Foreign Ministry condemned drone strikes targeting its civilian air traffic systems.
Economic Pressures and Additional Regional Chokepoints
The prolonged blockade of the Strait of Hormuz continues to ripple through international commodity markets. Benchmark Brent crude traded above $88 a barrel, while regular gasoline in the United States climbed to an average of $4 a gallon. The sustained pricing pressure comes as voters head toward midterm elections this fall, keeping energy costs at the forefront of domestic politics.
Complicating matters further, Yemen’s Houthi rebels announced a maritime embargo against Saudi Arabia, threatening to block shipping through the Bab el-Mandeb between the Red Sea and the Gulf of Aden.
