Oman has presented a proposal to Iran for a joint regional mechanism to manage the Strait of Hormuz with voluntary fees, a Gulf source told Reuters on Tuesday.
– Under the Omani proposal, which has regional backing and was presented to Iranian officials over the weekend in Tehran, Iran would not exercise sole control of the vital waterway, the source added.
– The proposal is based on the Strait of Malacca, which connects the Indian and Pacific Oceans and is jointly managed by the states bordering it: Indonesia, Malaysia, and Singapore.
– Under the proposal, those who use the Strait of Hormuz would voluntarily contribute to a fund that finances the cost of managing navigation, environmental protection and search and rescue, among other services.
– Management of the Strait of Hormuz — which carried a fifth of global oil and liquefied natural gas before the conflict — has become the main hurdle in talks to bring the Iran war to an end and a flashpoint for repeated returns to conflict.
– Iran has said the strait cannot go back to its pre-war status where shipping flowed freely, while Gulf states insist there be no mandatory payment of fees to Iran.
– Iran’s Foreign Minister Abbas Araqchi discussed the Strait of Hormuz with his Omani and Saudi counterparts on Monday.
– “He emphasised the need to strengthen cooperation and advance joint diplomatic efforts to establish stability in the region, and lift the insecurity imposed on the Strait of Hormuz due to the aggressive actions of the United States,” according to Iran’s foreign ministry statement.
– President Donald Trump said on Monday the United States was having “good talks” with Iran and there was a chance of a deal, but he warned that U.S. strikes would resume if the negotiations failed to deliver.