IRIA News

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Oman has presented Iran with a Gulf-backed proposal which states that any agreement must grant it control over key shipping lanes, highlighting continuing disagreements over one of the world’s most strategically important waterways.

The proposal comes after months of conflict that disrupted maritime traffic through the strait, a vital route for global energy supplies.

The negotiations are aimed at restoring stability, ensuring safe navigation, and preventing another escalation that could threaten international shipping and oil markets.

Oman Proposes Joint Management System

According to officials familiar with the discussions, Oman has proposed creating a joint regional mechanism for managing the Strait of Hormuz, supported by Gulf states. Under the plan, ships using the waterway would be invited to make voluntary financial contributions rather than paying mandatory transit fees.

The proposal is modeled on the Strait of Malacca, where Indonesia, Malaysia, and Singapore encourage voluntary contributions to support navigation safety, environmental protection, and search-and-rescue operations without imposing compulsory charges on passing vessels.

The proposed arrangement would prevent any single country from exercising exclusive control over the strategic waterway while providing funding for its operation and maintenance.

Officials said the initiative is intended to provide a framework for restoring commercial shipping after months of disruption caused by the conflict between Iran, the United States, and Israel.

Iran Rejects Shared Control Proposal

Iran, however, has rejected Oman’s initial proposal, insisting that it must retain greater authority over shipping through the strait. Deputy Foreign Minister Kazem Gharibabadi said Oman’s proposal envisioned replacing the current navigation routes with temporary shipping lanes divided equally between Iranian and Omani control.

“Our proposal is that one shipping lane through the strait must be entirely under Iran’s control, with part of the other lane also under Iranian control. This is our definitive position, and Iran will accept no other formula,” Gharibabadi said.

He warned that if Oman does not accept Tehran’s proposal, the Strait of Hormuz would remain closed, adding that Iran is also prepared for the possibility of renewed military conflict.

Iran has also proposed managing one direction of shipping through waters under its authority while Oman oversees part of the opposite direction. Tehran has made clear that it opposes any arrangement giving it less than substantial operational control over vessel movements.

Dispute Over Transit Fees

One of the main issues separating the parties is how ships should access the waterway. Iran has argued that vessels using the strait should contribute service fees for navigation, while the United States has opposed any mandatory payment system, saying international shipping should continue to enjoy free passage without compulsory charges.

Under Oman’s proposal, any payments would be voluntary rather than mandatory, similar to the model used in Southeast Asia.

Iran’s military leadership has also rejected a separate U.S. proposal that compensation for damaged vessels should come from frozen Iranian assets. Iranian officials warned that any country or company accepting such compensation could be denied passage through the Strait of Hormuz by Iran’s armed forces.

Regional Security Concerns Continue

The negotiations come as security concerns across the region remain high. The Gulf Cooperation Council’s foreign ministers held a virtual meeting to discuss recent developments and ways to strengthen cooperation to ensure the safety and freedom of navigation through the Strait of Hormuz.

Meanwhile, Yemen’s Houthi movement has expanded regional tensions by announcing a blockade of Saudi ports on the Red Sea. The group later claimed it had launched ballistic missiles at a Saudi oil tanker, saying the vessel was forced to turn back.

Iran has also reported that drone attacks were detected in Jordan, Saudi Arabia, and northern Iran following the suspension of U.S. airstrikes.

Trump Warns Military Action Could Resume

The latest diplomatic efforts coincide with a pause in U.S. military operations against Iran. President Donald Trump said Washington was engaged in “good talks” with Iran but warned that military strikes could resume if negotiations fail.

“I think we have a very strong position right now, they know I’m going to do that if they don’t make a deal,” Trump said, adding that the United States would prefer to reach a diplomatic solution rather than launch additional attacks.

He also repeated his warning that the United States could target Iran’s heavily fortified Pickaxe Mountain facility if negotiations collapse.

Iran, however, maintains that it has not sought new negotiations with Washington and says ongoing discussions with Oman are focused solely on the future management of the Strait of Hormuz rather than direct talks with the United States.

Iranian Foreign Ministry spokesman Esmaeil Baghaei said several rounds of discussions with Oman had been constructive but stressed that they were unrelated to Washington.

He said the current status of the waterway had not changed and argued that continued regional insecurity resulting from U.S. military actions meant the Strait of Hormuz remained closed.

Oil Markets React

Financial markets responded positively after the United States suspended its latest bombing campaign against Iran. Oil prices fell sharply, with Brent crude declining around 8% after the announcement before extending losses in subsequent trading to around $87 per barrel as investors anticipated reduced risks to global energy supplies.

However, analysts note that uncertainty remains high because negotiations over the future management of the Strait of Hormuz have yet to produce an agreement acceptable to all parties.

The Strait of Hormuz remains one of the world’s most important maritime chokepoints, carrying roughly one-fifth of global oil and liquefied natural gas exports under normal conditions.

While Oman is seeking a compromise through a jointly managed, voluntary contribution system, Iran continues to insist on greater control over shipping lanes and has warned that the waterway will remain closed unless its demands are accepted.

The outcome of the negotiations is expected to play a significant role in determining regional security, the future of maritime trade, and stability in global energy markets as diplomatic efforts continue alongside lingering military tensions.