Oman has put forward a Gulf-supported proposal to Iran aimed at regulating maritime traffic through the Strait of Hormuz, one of the world’s most critical energy corridors. The plan includes a voluntary system of transit fees designed to stabilize shipping after months of disruption caused by the ongoing conflict involving the United States, Israel, and Iran.
This initiative seeks to rebuild trust in maritime trade passing through the strategic waterway, which has seen significant interruptions amid escalating regional tensions. Notably, the proposal was presented as US President Donald Trump indicated that “good talks” were underway with Iran, while cautioning that military strikes could resume if diplomatic efforts fail. Tehran, however, denied any preparations to restart negotiations with Washington.
Earlier in the month, the US launched a renewed bombing campaign intended to diminish Iran’s influence over the Strait of Hormuz, a vital route that previously handled about one-fifth of the world’s oil and liquefied natural gas shipments. In response to US and Israeli attacks on February 28, Iran restricted passage through the strait, allowing only its own vessels to transit. Although a partial reopening agreement was reached last month, it collapsed in early July after Iran targeted vessels using an unauthorized maritime channel.
Iran has expressed a desire to jointly manage the strait with Oman, which controls the opposite shore, and to impose service fees on ships passing through. Meanwhile, Washington insists on returning to the pre-conflict status quo, where ships could pass freely without payments, arguing that mandatory fees would be unlawful.
Under the Omani proposal, Iran would not hold exclusive control, and any fees charged would remain voluntary. The plan resembles the system in Asia’s Strait of Malacca, where Indonesia, Malaysia, and Singapore request voluntary contributions from ships to fund navigation, environmental protection, and search-and-rescue services. A Western diplomat likened this to a voluntary carbon tax on flights, where passengers can opt to pay to offset emissions.
As of Monday evening, Iran had not formally responded to the proposal, though Omani officials met with Iranian representatives in Tehran over the weekend. On Monday, Iran’s Foreign Minister Abbas Araqchi discussed the Strait of Hormuz with his Omani and Saudi counterparts, emphasizing the importance of regional cooperation.
Meanwhile, President Trump canceled his latest planned air strikes after military commanders advised that the campaign had reached its limit. The 13-day US bombing offensive inflicted significant damage on southern Iran, targeting bridges, tunnels, and military sites, and resulted in numerous casualties. Iran retaliated with attacks on US bases in neighboring countries, killing four service members, and struck civilian infrastructure in Gulf states, claiming these were responses to US attacks on civilian targets.
Iran stated it would maintain a ceasefire as long as the US did, but drone attacks were reported on Monday in Jordan, Saudi Arabia, and northern Iran, with Jordan downing another drone on Tuesday. Speaking on Monday, Trump expressed hope for a resolution to the five-month conflict but warned that strikes would resume if talks failed. “I think there’s a good chance that something could happen, and if it does, good, if it doesn’t, we go back to doing what we were doing two days ago,” he said.
Iran denies seeking new negotiations with the US, accusing Washington of violating the agreement reached last month on a framework for talks to end the war. Trump is scheduled to meet Israeli Prime Minister Benjamin Netanyahu in Washington on Tuesday. Although Israel participated in the initial bombing campaign, it has not been involved in subsequent peace talks, and relations between the two leaders have recently been strained. Trump has reportedly restrained Netanyahu from attacking targets in Lebanon to avoid undermining peace efforts with Tehran.
The conclusion of the US bombing campaign over the weekend led to an approximately 8% drop in oil prices on Monday, with Brent crude futures falling more than 2.5% to around $86 per barrel by mid-morning Tuesday.
Washington and Tehran agreed in June on a framework for talks intended to address major issues, including Iran’s nuclear program, by the end of August. However, they have disagreed over the framework’s language concerning the strait: the US insists it mandates free passage, while Iran claims it grants supervisory authority over transit.
