Iran and Oman Exchange Proposals for Managing Strait of Hormuz
Al Jazeera Staff
Iran and Oman have exchanged proposals for managing the Strait of Hormuz, with Oman suggesting a joint regional mechanism based on the Malacca Strait model. Tehran has rejected the plan, demanding to control its territorial waters while leaving Muscat with partial management of opposite lanes. Differences remain over fees, routing, and mine clearance, though talks are ongoing.
Iran and Oman have exchanged proposals regarding the future management of the Strait of Hormuz, as differences persist between the two nations whose territorial waters border this strategic waterway.
According to Reuters on August 5, Oman presented Iran with a proposal for a joint regional mechanism to manage the Strait of Hormuz with “voluntary fees.” The proposal, which reportedly has regional backing, aims to prevent Iran from having full control of the strait, according to a Gulf source and a Western diplomat.
Oman’s proposal is based on the Malacca Strait model, where Indonesia, Malaysia, and Singapore request voluntary contributions from ships using the strait to fund maritime assistance, environmental protection, and search and rescue operations. The goal of the proposal is to end disruptions to global trade caused by the strait’s closure during the US-Israel war against Iran. However, Tehran argues that the strait cannot return to its pre-war state with free flow.
In a statement to Iranian state media on August 5, Kazem Gharibabadi, Iran’s Deputy Foreign Minister for Legal and International Affairs, said Tehran rejects Oman’s proposal for equal division of shipping lanes, as it does not address Iran’s security concerns. Gharibabadi stated that Tehran proposes Iran manage maritime traffic through the part of the strait within its territorial waters, while Muscat manages a portion but not the entire opposite lane.
Gharibabadi emphasized that Tehran has “no plan to negotiate with the US” but confirmed that discussions are progressing “step by step” with Oman. He also warned that Tehran would consider “any action” to maintain control of the strait, including the potential resumption of war.
Al Jazeera correspondent Resul Serdar in Tehran reported: “The Omanis are now proposing three shipping lanes: one through Iranian territorial waters, one international lane, and one through Omani territorial waters. Despite public statements, sources tell us Iran is showing some flexibility.”
Another Al Jazeera correspondent in Tehran, Tohid Asadi, noted that there remain many “points of disagreement” between Oman and Iran regarding Hormuz, including vessel routing, fees, who will determine agreements, and mine clearance – which is believed to be Iran’s responsibility.
Professor Paul Musgrave at Georgetown University in Qatar described Oman’s proposal to restore operations in the Strait of Hormuz as positive, but said it remains to be seen whether hardliners in Iran will accept it. He noted that under the Malacca Strait model, voluntary contributions generate around $70 million annually, far lower than the $1 million per vessel fee Tehran is believed to have proposed as a “service charge” at the Strait of Hormuz.
On the same day, foreign ministers of the Gulf Cooperation Council (GCC) held an online meeting to discuss the latest developments in the conflict, including measures to enhance cooperation on freedom of navigation through this waterway, according to a statement from Qatar’s Foreign Ministry.
Earlier, the US paused a nearly two-week-long aerial campaign against Iran following pressure from regional mediators, encouraging a search for diplomatic solutions and a return to a memorandum signed in June, which allowed vessels to resume operations in the Strait of Hormuz. The strait once transported one-fifth of the global energy supply before the US-Israel war against Iran began on February 28.
