Oman Proposes Hormuz Fee Plan with Iran
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- Oman presented a proposal to Iran for a joint regional mechanism to manage the Strait of Hormuz with voluntary fees, a Gulf source told Reuters on Tuesday, adding the plan has regional backing.
- The proposal would prevent Iran from exercising sole control of the vital waterway, which carried a fifth of global energy supplies before the conflict, according to Reuters.
- The plan is modeled on the Strait of Malacca, where users voluntarily contribute to fund navigation, environmental protection, and search and rescue.
- The US abruptly suspended its air strike campaign against Iran over the weekend, raising hopes of a diplomatic solution that would allow shipping to resume in the strait.
- Trump said on Monday the US was having "good talks" with Iran and there was a chance of a deal, but warned US strikes would resume if negotiations failed to deliver.
- Iran's Foreign Minister Abbas Araqchi discussed the Strait of Hormuz with his Omani and Saudi counterparts on Monday, blaming US "aggressive actions" for insecurity in the waterway.
Why it matters: The Omani proposal directly answers who governs a corridor carrying 20% of global energy supplies during an active US-Iran conflict. By borrowing the Malacca model, Oman is offering Iran a face-saving alternative to sole control — but Trump's explicit warning that strikes resume if talks fail makes this diplomatic window contingent on results, not process.
