Iran rejected an Omani-backed proposal to manage the Strait of Hormuz through voluntary fees and shared transit corridors, insisting on wartime control of the strategic waterway. The diplomatic stalemate persists even as the United States paused its two-week bombing campaign following regional pressure to restore shipping.
The Omani Proposal and the Strait of Malacca Model
Oman presented a plan backed by Gulf states to manage the Strait of Hormuz, attempting to resolve trade disruptions caused by the conflict. Under the design, Iran would not exercise sole control over the waterway, and transit fees would be strictly voluntary. Oman presented a proposal to Iran for a joint regional mechanism to manage the Strait of Hormuz with “voluntary fees”, Reuters reported on Tuesday. A Gulf source and a Western diplomat told Reuters on Tuesday that Oman had presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it. Oman handed it to Iran over the weekend, according to a Gulf source and a Western diplomat.
The framework mirrors the model used on Asia’s Strait of Malacca. Oman’s proposal is reportedly based on the Strait of Malacca, which connects the Indian and Pacific Oceans. Oman’s proposal is based on the Strait of Malacca in East Asia, a model whereby ships that use the strait provide voluntary fees. There, Indonesia, Malaysia and Singapore ask ships that use the strait to voluntarily contribute to fund navigation, environmental protection, and search-and-rescue operations.
This proposal aims to contribute to ending the global disruption to trade caused by the strait’s closure in the US-Israeli war on Iran. The Omani proposals are intended to serve as a basis to end the disruption to trade through the strait caused by the U.S.-Israeli war on Iran.
Tehran Rejects Division and Demands Wartime Control
Tehran, however, says the strait cannot go back to its pre-war status where shipping flowed freely. In comments to Iranian state media on Tuesday, Kazem Gharibabadi, the country’s deputy foreign minister for legal and international affairs, said Tehran rejects an Omani proposal for an equal division of transit routes between the two countries, as such a plan does not address Tehran’s security concerns. Gharibabadi said that Tehran proposed to Oman that Iran would manage shipping through its side of the strait and Muscat would manage part but not all of the opposite lane. He added that Tehran has no plans to negotiate with the US
, but affirmed talks are proceeding “step by step” with Oman, warning that Tehran will consider “any action” to maintain control over the strait, including the resumption of war. The Omanis are now suggesting three lines for the maritime traffic: one that runs through Iran’s territorial waters, an international one, and one through Omani territorial waters, according to Al Jazeera’s Resul Serdar. Addressing Shanghai Cooperation Organization Council of Foreign Ministers Meeting in Kyrgyzstan on Friday, Iran’s Foreign Minister Abbas Araghchi has said his country reserves rights to retaliate against any acts of aggression. Iran will not accept a temporary ceasefire and will continue its current course until its demands regarding the Strait of Hormuz are met, Foreign Minister Abbas Araghchi said Friday. Speaking to reporters on the sidelines of the Shanghai Cooperation Organization (SCO) foreign ministers’ meeting in Cholpon-Ata, Kyrgyzstan, Araghchi said Iran would not discuss a temporary truce unless our demands regarding the Strait of Hormuz are fulfilled,
according to Iranian media. He said consultations with Russia and China were ongoing, adding that he held detailed talks with Russian Foreign Minister Sergey Lavrov and Chinese Foreign Minister Wang Yi on the sidelines of the meeting. Araghchi also said Pakistan had conveyed proposals as a mediator but argued that Tehran’s dispute with Washington was not about mediation but about the US approach.
Araghchi says Tehran will continue its course until what it calls Iranian people’s ‘legitimate demands’ are fulfilled.
Washington’s Position and Regional Strains
A U.S. official on Tuesday again rejected the idea of tolls or fees for ships transiting the strait, reiterating that it is an international waterway that should be free of Iranian control or restrictions. The official told Reuters that the deal under discussion would not include any tolls or fees. President Donald Trump, who abruptly called off a two-week U.S. bombing campaign over the weekend in his latest strategic U-turn, said there were “good talks” under way with Iran but threatened to restart strikes unless negotiations deliver. Iran has denied seeking to resume talks with the United States. Washington launched fresh strikes earlier this month to break Iran’s grip on the shipping lane. Trump warns US strikes would resume if negotiations fail. Oil prices continue to fall after Trump halt to airstrikes.
