Oman has presented Iran with a Gulf-backed proposal for a joint regional mechanism to manage the Strait of Hormuz with voluntary shipping fees, but Tehran has rejected the planned equal division of transit routes, according to Iranian and Gulf officials, as diplomatic efforts to resolve the strait crisis intensify.
Oman Mediates with Malacca Model
The Omani proposal, which has regional backing from Gulf states, is modeled on the Strait of Malacca governance system where Indonesia, Malaysia, and Singapore ask ships that use the strait to voluntarily contribute to fund navigation safety, environmental protection, and search-and-rescue operations. Under the plan, Iran would not exercise sole control over the waterway, an unnamed Gulf source and Western diplomat told Reuters.
The initiative aims to end the global disruption to trade caused by the strait partial closure during the US-Israeli war on Iran. The Strait of Hormuz, through which approximately 20 percent of the world oil supply passes, has been a central flashpoint in the conflict since February, with Iran asserting control over shipping lanes and disrupting tanker traffic.
Iran Rejects 50-50 Division, Counterproposes
Kazem Gharibabadi, Iran deputy foreign minister for legal and international affairs, told Iranian state media on Tuesday that Tehran rejects the Omani proposal for an equal division of transit routes between the two countries, arguing that such a plan does not address Tehran security concerns regarding the waterway.
The Omanis are now suggesting three lines for the maritime traffic: one that runs through Iran territorial waters, an international one, and one through Omani territorial waters. Despite public statements, our sources tell us Iran is demonstrating some flexibility.
Resul Serdar, Al Jazeera correspondent reporting from Tehran
Gharibabadi said Tehran has 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 directly with the United States but confirmed talks are proceeding step by step with Oman. He warned that Tehran will consider any action to maintain control over the strait, including the resumption of hostilities.
Multiple Mediation Channels Active
The diplomatic push involves multiple mediators. According to Axios, Oman is leading the mediation effort, with Qatar, Pakistan, and Egypt also involved alongside Trump envoys Steve Witkoff and Jared Kushner. The talks come against the backdrop of a rapidly shifting strategic landscape, with the Iran-aligned Houthis in Yemen opening another front in the Red Sea and Ukraine becoming increasingly drawn into the conflict.
Al Jazeera reported that there remain many points of contention between Oman and Iran on Hormuz, including the trajectory of ships, the fee structure, who will define the arrangements, and mine clearances, which will reportedly be Iran responsibility. Despite these obstacles, Al Jazeera sources in Tehran said Iran is demonstrating some flexibility in the talks despite its public强硬 stance.
What to Watch
The Hormuz negotiations represent the most significant diplomatic effort to resolve the core economic flashpoint of the US-Iran conflict. With global oil markets still reeling from supply disruptions, the success or failure of the Omani mediation could determine whether the current pause in fighting holds or whether the region returns to open conflict. Talks are expected to continue in the coming days, with the specific question of transit fees and lane control remaining the key sticking points.