Oman has won backing from Gulf states for a proposal that would allow Tehran to collect voluntary fees from vessels using the Strait of Hormuz, a Gulf source told Reuters on Tuesday, offering a potential route out of the disruption to oil shipping caused by the war between the United States, Israel and Iran.
President Donald Trump, who abruptly halted a two-week US bombing campaign over the weekend, said "good talks" were under way with Iran, though he warned strikes would resume if negotiations failed to produce results. Iran has denied seeking to resume talks with Washington.
How the dispute over the strait began
Washington launched its renewed bombing campaign earlier this month in an effort to break Iran's control over the strait, through which roughly a fifth of global oil and liquefied natural gas passed before the war began. Iran had effectively closed the strait to all but its own vessels after the United States and Israel launched their attack on 28 February. A deal reached last month between Washington and Tehran had partially reopened the waterway, but that agreement collapsed in early July after Iran fired on ships using a shipping channel it does not recognise.
Iran has said it wants to manage the strait jointly with Oman, which controls the opposite shore, and to charge service fees to ships passing through. Washington, for its part, wants a return to the prewar arrangement, under which vessels passed freely and without payment, and argues that mandatory fees would be illegal.
The Omani proposal
Under the plan put forward by Oman, Iran would not have sole control over the strait and any fees paid by shipping companies would be voluntary rather than mandatory, according to the Gulf source. The arrangement would mirror one already in place in the Strait of Malacca in Asia, where Indonesia, Malaysia and Singapore ask passing ships to make voluntary contributions toward navigation, environmental protection and search-and-rescue services. Iranian Foreign Minister Abbas Araqchi discussed the proposal with his Omani and Saudi counterparts on Monday, stressing the need for regional cooperation, according to Iran's foreign ministry.
Trump warns strikes could resume
Trump called off the latest round of air strikes after military commanders advised him that the campaign had run its course. Over 13 nights, the renewed US bombing killed dozens of people in Iran and destroyed bridges, tunnels and military targets across the south of the country. Iran responded with attacks on US bases in neighbouring countries that killed four American service members, along with strikes on civilian infrastructure in Gulf states, which it described as retaliation for US strikes on civilian targets.
Iran has said it will hold fire as long as Washington does the same, though drone attacks were reported in Jordan, Saudi Arabia and northern Iran on Monday, with Jordan reporting a further drone shot down on Tuesday. Speaking on Monday, Trump expressed cautious optimism about ending the five-month conflict, warning that strikes would resume "if it doesn't" produce results, but stopping short of any firm commitment either way.
Iran maintains it has not sought new negotiations with Washington, which it accuses of violating a framework agreement reached last month meant to resolve outstanding issues, including Iran's nuclear programme, by the end of August. The two sides continue to dispute the meaning of that agreement's language on the strait, with Washington insisting it guarantees free passage and Tehran arguing it grants Iran the authority to supervise transit.
Netanyahu meeting adds a further complication
Trump is due to meet Israeli Prime Minister Benjamin Netanyahu in Washington on Tuesday. Although Israel took part in the initial bombing campaign against Iran, it has not been involved in the subsequent peace talks, and relations between the two leaders have been strained in recent months, with Trump having had to restrain Netanyahu from striking targets in Lebanon aimed at weakening Iran-backed Hezbollah, a dynamic that has complicated efforts to reach a settlement with Tehran.
Oil prices fell sharply following the halt in US strikes, dropping around 8% on Monday, with Brent crude futures down more than 2.5% at about $86 a barrel by Tuesday morning.
