Think Tank Proposes 8-Nation Joint Management of Strait of Hormuz, Fee for Supertankers

A London-based think tank, the Bourse & Bazaar Foundation, has proposed a novel approach to managing the Strait of Hormuz, shifting the focus from military confrontation to shared regional governance. The proposal suggests that the eight countries bordering the Persian Gulf could collectively manage the vital waterway, treating it as a "shared territory" akin to post-World War II European cooperation models.

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This initiative's core concept is to analogize the situation in the Persian Gulf to Europe after World War II.

The core concept, inspired by the European Coal and Steel Community, envisions a system where a small fee is levied on supertankers and other large vessels transiting the strait. This revenue would be earmarked for security maintenance and environmental protection efforts. The foundation argues that this model aligns with international law, addresses Iran's desire for greater control, and fosters a common interest in peace among nations including Iran, Iraq, and the six Gulf Cooperation Council (GCC) states.

Controlling global oil supply, the Strait of Hormuz is a critical chokepoint where tensions between the U.S. and Iran have escalated due to attacks on commercial vessels. Military experts deem attempts to forcibly secure the strait a Sisyphean task, fraught with extreme danger for naval assets. The deployment of mobile drones, missiles, and fast-attack craft by Iran further complicates any military solution, making a sustained blockade a significant threat to global trade.

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The Strait of Hormuz is an opportunity for regional cooperation; if managed properly, its economic and financial benefits can be shared more equitably among regional countries.

The initiative's success hinges on the acceptance of both the U.S. and Iran. While Iran has shown some openness, with its state media reporting on the proposal as an "opportunity for regional cooperation," the U.S. stance remains uncertain. Some U.S. officials advocate for the restoration of pre-conflict freedom of navigation, and past proposals for fees were quickly retracted. Analysts suggest that without clear long-term guarantees from the U.S., Gulf states may hesitate to act unilaterally or collectively on this proposal.

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In addition to maintaining maritime norms, we must also use diplomacy and negotiation to achieve national interests.