Oman proposes Gulf-backed voluntary fees to use Hormuz

Oman has presented Iran with a plan, supported by Gulf states, to manage the Strait of Hormuz and mitigate trade disruptions. The proposal includes the collection of voluntary fees for ships using the vital waterway.

A senior Iranian source indicated that Tehran has not yet responded to the Omani proposals. These suggestions are intended to provide a framework for ending the disruption to trade through the strait, which has been impacted by the ongoing conflict involving the US and Israel.

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Tehran was yet to respond to the Omani proposals, intended to serve as a basis to end the disruption to trade through the strait caused by the US-Israeli war on Iran.

The Omani plan stipulates that Iran would not exercise sole control over the strait. Fees collected would be voluntary, drawing an analogy to the system in place at Asia's Strait of Malacca. In that region, Indonesia, Malaysia, and Singapore request voluntary contributions from ships to fund navigation, environmental protection, and search-and-rescue operations.

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Under the Omani proposal, Iran would not exercise sole control and fees would be voluntary, the Gulf source and Western diplomat briefed on the matter told Reuters.

This initiative comes amid heightened tensions. President Donald Trump recently called off a US bombing campaign against Iran but threatened to restart strikes if negotiations fail. Iran denies seeking to resume talks with the US. Washington had launched renewed bombing campaigns earlier this month, aiming to break Iran's perceived control over the strait.

Iran had previously restricted passage through the strait following attacks by the US and Israel on February 28. An agreement last month that partially reopened the strait collapsed in early July after Iran fired on ships it did not approve. The Gulf Cooperation Council foreign ministers discussed the conflict and maritime safety via video call on Tuesday.

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Washington wants to return to the status quo prior to the war, when ships were able to pass freely with no payments, and says charging mandatory fees would be illegal.