Oman has presented Iran with a Gulf-backed plan

DUBAI, July 28 – Oman has presented Iran with a Gulf-backed plan to jointly manage the Strait of Hormuz through a system of voluntary shipping fees, aiming to end a trade-crippling conflict triggered by the U.S.-Israeli war on Iran.

Tehran has not yet responded to the proposal, which seeks to reconcile Iran's demands for transit revenue with Western insistence on free maritime navigation.

The diplomatic push follows a strategic U-turn by U.S. President Donald Trump, who called off a intensive two-week bombing campaign over the weekend. Trump stated that "good talks" are underway but threatened to resume airstrikes if negotiations fail. Iran continues to deny seeking direct talks with Washington.

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The Friction Points

The conflict has locked major powers into opposing positions over the vital maritime chokepoint, which previously handled 20% of global oil and liquefied natural gas (LNG):

• Iran's Stance: Tehran insists the strait cannot return to a toll-free status. It demands joint management with Oman to collect mandatory "service fees" from commercial vessels.
• Western & Gulf Stance: Washington and its allies argue that mandatory tolls on an international strait violate maritime law. They demand a return to unhindered pre-war transit rules.

The Omani Compromise

The Omani framework aims to break the deadlock by shifting from mandatory enforcement to a cooperative model:

• Voluntary Fees: Shipping companies and energy importers would make voluntary contributions instead of legally binding tolls. A Western diplomat compared the mechanism to carbon offset checkboxes used by airlines.
• The "Malacca Model": The plan is modeled after the Strait of Malacca system, where regional nations collect voluntary funds from commercial users to pay for navigation safety and security.
• Joint Oversight: The proposal removes unilateral Iranian control, placing the waterway under a shared regional framework backed by neighboring Gulf states.

Market and Diplomatic Reaction

Energy markets responded with cautious optimism following the pause in U.S. military action. Brent crude futures fell more than 2% to $86.32 a barrel as traders priced in a potential diplomatic resolution.

While Iranian Foreign Minister Abbas Araqchi held phone consultations regarding regional security with his Omani and Saudi Arabian counterparts, a senior source in Tehran confirmed that a formal response to the proposal is still pending.