Jul 28, 2026
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Oman has presented Iran with a proposal to manage the Strait of Hormuz through voluntary service fees, aiming to resolve trade disruptions caused by the ongoing U.S.-Israeli war on Iran.

ManyPress

ManyPress

ManyPress Editorial

3 min readSource:The Hindu
Oman Proposes Gulf-Backed Plan for Voluntary Fees in Strait of Hormuz

Key facts

  • The Omani plan aims to replace mandatory fees with voluntary contributions to support navigation and safety.
  • President Trump halted a two-week U.S. bombing campaign over the weekend but threatened to resume strikes if negotiations fail.
  • Iran has denied seeking new negotiations with the United States, citing previous disagreements over a June framework agreement.
  • The conflict has caused significant volatility in oil markets, with Brent crude futures falling more than 2.5% on Tuesday.
  • Iran's Foreign Minister Abbas Araqchi discussed the strait with Omani and Saudi counterparts on Monday.

Oman has introduced a plan backed by Gulf states to manage the Strait of Hormuz, which includes the collection of voluntary fees for vessel transit. The proposal, reported by a Gulf source and a Western diplomat on Tuesday, seeks to end trade disruptions resulting from the U.S.-Israeli war on Iran. The initiative comes as U.S. President Donald Trump recently halted a two-week bombing campaign against Iran following advice from military commanders.

By the numbers

8%
drop in oil prices on Monday
2.5%
decline in Brent crude futures on Tuesday
$86
price per barrel of Brent crude on Tuesday

Proposed Management of the Strait

The Omani proposal suggests a system similar to the Strait of Malacca, where ships provide voluntary contributions to fund navigation, environmental protection, and search-and-rescue operations. Unlike Iran's previous desire to charge mandatory fees, the Omani plan ensures Iran would not hold sole control, and payments would remain optional. A Western diplomat likened the concept to a voluntary carbon tax for airline passengers.

Diplomatic and Military Context

While President Trump has expressed optimism regarding potential negotiations, Iran maintains it is not seeking new talks with the United States, accusing Washington of violating a previous agreement. The conflict has seen significant military action, including 13 nights of U.S. bombing that destroyed bridges, tunnels, and military targets, and Iranian strikes on U.S. bases that resulted in four service member deaths. As of Monday evening, Iran had not provided a formal response to the Omani proposal.

Timeline

  1. February 28
    The United States and Israel attacked Iran, leading to the effective closure of the Strait of Hormuz.
  2. June
    The United States and Iran reached an agreement on a framework for talks to resolve major issues.
  3. Early July
    A deal to partially reopen the strait collapsed after Iran fired on ships using a channel it does not approve.
  4. July 27
    Iran's Foreign Minister discussed the strait with Omani and Saudi counterparts.
  5. July 28
    Reports emerged that Oman presented a plan for voluntary fees to Iran.

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This article was independently rewritten by ManyPress editorial AI from reporting originally published by The Hindu.

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