The proposal is aimed at restoring trade through the strait, which has been disrupted since the US-Israeli war against Iran began.
Oman has presented Iran with a Gulf-backed plan to manage the Strait of Hormuz that includes collecting voluntary fees from ships using the key waterway, a Gulf source and a Western diplomat told Reuters on Tuesday.
The proposal is aimed at restoring trade through the strait, which has been disrupted since the US-Israeli war against Iran began. However, Iran and Gulf states remain divided over how the crucial waterway should be managed.
Fee Plan vs Iran’s Demand For Control
The Strait of Hormuz, through which around a fifth of global oil and liquefied natural gas passed before the war, has become a major obstacle in efforts to ease tensions.
Iran has said the waterway cannot return to its pre-war status, when ships moved freely without restrictions. Tehran has argued that it needs a greater role in managing transit due to security concerns.
Iran’s Deputy Foreign Minister Kazem Gharibabadi said Tehran proposed that Iran manage one direction of shipping through its side of the strait, while Oman manages part, but not all, of the opposite route.
He said Iran had rejected an Omani proposal for an equal division of transit routes, arguing it did not address Tehran’s security concerns until long-term regional stability was achieved.
Gharibabadi also said the strait would remain closed if Muscat rejected Iran’s proposal. He added that Tehran no longer recognised the Traffic Separation Scheme (TSS), a maritime route adopted by the International Maritime Organization, saying it mostly falls within Omani waters.
The TSS is currently not being used due to fears of mines, with Iran’s northern route and Oman’s southern route replacing it.
“This is for national security and not bullying because when the TSS was for 60 years in Omani waters, we didn’t say anything,” Gharibabadi said.
US Opposes Fees As Shipping Risks Continue
Under Oman’s proposal, Iran would not have sole control over the strait and any fees would be voluntary, the Gulf source and Western diplomat told Reuters.
The system would be similar to arrangements in Asia’s Strait of Malacca, where Indonesia, Malaysia and Singapore seek voluntary contributions from ships to fund navigation, environmental protection and search-and-rescue operations.
However, Washington has opposed any fee system, saying the Strait of Hormuz is an international waterway that should remain open without Iranian restrictions.
Iran effectively shut the strait to ships other than its own after the US and Israel launched attacks on February 28. A later agreement partially reopened the route, but talks collapsed in early July after Iran fired on ships using a channel it did not approve.