Iran has rejected a proposal from Oman to evenly divide control of the Strait of Hormuz, a move that threatens hopes for a swift resumption of negotiations between Tehran and Washington to end their ongoing war. According to a top diplomat, Tehran demanded on Tuesday that it take the lion’s share of the waterway, which is critical to the global oil supply.
Iran Rejects Omani Proposal for Equal Control of Strait of Hormuz
The proposal, which reportedly has regional backing, suggested a temporary plan to establish even lanes of control. Kazem Gharibabadi, Iran’s deputy foreign minister for legal and international affairs, told Iranian state media on Tuesday that Tehran rejected the plan for an equal division of transit routes because it fails to address the country’s security concerns. In response, Gharibabadi stated that Tehran proposed a different arrangement where Iran would manage shipping through its side of the strait, while Muscat would manage a portion, but not all, of the opposite lane.
The “Strait of Malacca” Model and Financial Disputes
Oman’s proposal is based on the model used in the Strait of Malacca in East Asia. In that region, Indonesia, Malaysia, and Singapore request voluntary fees from ships to fund search-and-rescue operations, environmental protection, and navigation. This mechanism would ensure that Iran does not exercise sole control over the Strait of Hormuz.
Significant financial discrepancies exist between the two visions. Paul Musgrave, a professor at Georgetown University in Qatar, noted that the Strait of Malacca model generates approximately $70 million annually through voluntary contributions. In contrast, Tehran has reportedly proposed a “service fee” of $1 million per ship.
Regional Tensions and the US-Israeli War on Iran
The diplomatic standoff occurs against the backdrop of the US-Israeli war on Iran, which began on February 28. Before the conflict, the strait carried one-fifth of global energy supplies. Iran effectively closed the shipping lane by firing on or threatening ships that had not sought its permission. While a June 17 memorandum of understanding (MoU) between the US and Iran established a 60-day window of toll-free navigation, Tehran has stated the strait cannot return to its pre-war status of free shipping.
The United States recently suspended a nearly two-week campaign of air strikes against Iran following pressure from regional mediators to return to the June MoU. While U.S. President Donald Trump described “good talks” with Iran, the Iranian Foreign Ministry has denied that direct negotiations with the US are taking place, though it suggested messages are being exchanged via intermediaries. Trump warned that strikes will resume if talks fail to deliver progress.
Points of Contention and Diplomatic Efforts
Despite the rejection of the equal-division plan, Al Jazeera reports that some sources believe Iran is demonstrating some flexibility. However, several points of contention
remain between Oman and Iran, including:
- The specific trajectory of ships
- The structure and amount of fees
- The entity responsible for defining the arrangements
- Mine clearances, which would reportedly be Iran’s responsibility
On Tuesday, Iranian Foreign Minister Abbas Araghchi held separate phone calls with Oman’s Badr Al-Busaidi and Saudi Arabia’s Faisal bin Farhan to discuss regional stability and the insecurity in the strait. Simultaneously, Gulf Cooperation Council (GCC) foreign ministers met via video call to discuss improving cooperation regarding freedom of navigation in the waterway.
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