Hormuz Standoff: Oman Proposes Gulf-Backed Plan To Manage Critical Waterway. What Is It?
Hormuz Standoff: Oman Proposes Gulf-Backed Plan To Manage Critical Waterway. What Is It? Published By, Last Updated: July 28, 2026, 23:39 IST Donald Trump, who
Hormuz Standoff: Oman Proposes Gulf-Backed Plan To Manage Critical Waterway. What Is It? Published By, Last Updated: July 28, 2026, 23:39 IST Donald Trump, who halted a two-week US bombing campaign over the weekend, said "good talks" were underway with Iran but warned that strikes could resume if negotiations fail. Rapid Read Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman’s northern Musandam Peninsula on May 17, 2026. (IMAGE: REUTERS) Oman has put forward a Gulf-backed proposal to Iran aimed at restoring normal shipping through the Strait of Hormuz, Reuters reported, citing a Gulf source and a Western diplomat. The plan includes a system under which vessels would voluntarily pay transit fees for using the strategic waterway. According to the Reuters report, Tehran has not yet responded to the proposal, which is intended to help ease trade disruptions caused by the US-Israeli war on Iran.
US President Donald Trump said negotiations with Iran were showing progress, claiming there were “good talks" underway, but warned that the US could resume military action if discussions fail. His remarks came after he abruptly halted a two-week US bombing campaign over the weekend. Iran, however, has denied that it is preparing to restart talks with Washington. Strait of Hormuz Crisis The conflict had disrupted shipping through the Strait of Hormuz, a crucial energy route that previously carried around one-fifth of global oil and liquefied natural gas supplies. Following US and Israeli strikes on February 28, Iran restricted passage through the waterway, allowing only limited movement of vessels. What Has Oman Proposed? Tehran has proposed managing the critical maritime route jointly with Oman and introducing service fees for ships using the route.
Under an Omani proposal backed by Gulf states, the payments would be voluntary and Iran would not have exclusive control over the waterway, according to sources cited by Reuters. The proposed system has been compared to voluntary contribution models used in the Strait of Malacca, where funds support navigation, environmental protection and rescue operations. Meanwhile, Gulf Cooperation Council foreign ministers held discussions on improving maritime safety and freedom of navigation. Iran’s military command also rejected a US proposal involving compensation for damaged vessels through frozen Iranian assets, warning that countries or companies accepting such payments could face restrictions on using the Strait of Hormuz. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit About the Author Manisha Roy Manisha Roy is a Senior Sub-Editor at News18.com's general desk.
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