Oman Proposes Gulf-Backed Strait of Hormuz Management Plan

Oman has presented Iran with a Gulf-backed proposal to jointly manage the Strait of Hormuz, including a system of voluntary fees for ships using the strategic waterway, according to a Gulf source and a Western diplomat who spoke to Reuters on Tuesday.

A senior Iranian source told Reuters that Tehran has not yet responded to the Omani proposal. The plan is intended to provide a framework for restoring normal trade through the Strait of Hormuz following disruptions linked to the US-Israeli war on Iran.

Trump Signals Talks but Warns of More Military Action

US President Donald Trump said there were "good talks" taking place with Iran after he unexpectedly ended a planned two-week US bombing campaign over the weekend.

However, Trump also warned that military strikes could resume if negotiations fail to produce results. Iran, meanwhile, has denied that it is seeking to restart negotiations with the United States.

According to the report, Washington launched a renewed bombing campaign earlier this month in an effort to weaken Iran's control over the Strait of Hormuz.

Shipping Disruptions Continue in the Strait

The report states that Iran effectively closed the Strait of Hormuz to all ships except its own after US and Israeli attacks on February 28.

Although an agreement between the United States and Iran last month allowed partial reopening of the waterway, the arrangement ended in early July after Iran fired at ships travelling through a navigation channel that it does not recognise.

Voluntary Fee System Suggested Instead of Mandatory Charges

Iran has previously said it wants to jointly manage the Strait of Hormuz with Oman, which controls the opposite coastline, and introduce service fees for vessels using the route.

The United States wants shipping conditions to return to how they were before the conflict, allowing vessels to pass freely without payments. Washington also maintains that compulsory transit fees would be illegal.

Under Oman's proposal, Iran would not have sole authority over the strait, and any payments by ships would be voluntary, according to the Gulf source and the Western diplomat.

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The proposed system is similar to the arrangement used in the Strait of Malacca, where Indonesia, Malaysia and Singapore invite ships to make voluntary financial contributions that help fund navigation services, environmental protection and search-and-rescue operations.

The Western diplomat compared the proposal to voluntary carbon offset programmes offered when purchasing airline tickets, where travellers can choose whether to contribute.

Gulf Ministers Discuss Maritime Security

Foreign ministers from the Gulf Cooperation Council held a video conference on Tuesday to discuss recent developments in the regional conflict.

According to a statement from Qatar's foreign ministry, the ministers also discussed strengthening cooperation to ensure the freedom and safety of ships travelling through the Strait of Hormuz.

Iran Rejects Trump's Compensation Proposal

Iran's joint military command also rejected a proposal put forward by President Trump that would use frozen Iranian assets to compensate vessels damaged during the conflict, according to Iranian state media.

The military command warned that any country or company accepting such payments would not be allowed to pass through the Strait of Hormuz under the control of Iran's armed forces.