Europe, Gulf States May Pitch In To Fund Strait Of Hormuz Reopening Under New Plan: Report

Published 4 August 2026 · world

News world Europe, Gulf States May Pitch In To Fund Strait Of Hormuz Reopening Under New Plan: Report Europe, Gulf States May Pitch In To

News world Europe, Gulf States May Pitch In To Fund Strait Of Hormuz Reopening Under New Plan: Report Europe, Gulf States May Pitch In To Fund Strait Of Hormuz Reopening Under New Plan: Report Published By, Last Updated: August 05, 2026, 05:22 IST The proposal, which is still under discussion and not finalised, would create a "voluntary fund" backed by Gulf countries and some European members. Rapid Read Motorists drive their vehicles past a political billboard featuring US President Donald Trump and the Strait of Hormuz along Valiasr Square in Tehran. (AFP file photo) Europe and Gulf states may help finance a proposed fund aimed at reopening the Strait of Hormuz, as part of efforts to restore shipping through the vital energy route, The Telegraph reported. The proposal, which is still under discussion and not finalised, would create a “voluntary fund" backed by Gulf countries and some European members of the International Maritime Organisation (IMO), according to the report.

The fund would cover the costs of managing navigation, environmental protection, search and rescue operations and other services needed to keep the waterway open. Funding model inspired by Strait of Malacca The Telegraph reported that the plan is based on arrangements used in the Strait of Malacca, where Indonesia, Malaysia and Singapore receive voluntary contributions from users to maintain navigation facilities. Oman is reportedly backing the model, with the belief that countries and shipping companies dependent on Gulf energy supplies would contribute to ensure smooth passage through the Strait of Hormuz. The proposal comes amid efforts to ease tensions between the US and Iran and restore the flow of oil and gas through one of the world’s most important energy chokepoints. Iran has insisted that the waterway can only reopen after the US lifts its naval blockade.

Under the proposed arrangement, ships entering the Gulf would use a channel close to the Iranian coast, while outbound vessels would follow a route near Oman. A United Nations source told The Telegraph that the proposal has not yet been formally presented to the IMO, which includes Iran, Oman and the United States among its 176 members. However, the source said a voluntary fund could be explored as an alternative, as international law does not allow mandatory tolls on major shipping chokepoints. The plan is being discussed as Washington and Tehran continue diplomatic efforts. US officials, including Treasury Secretary Scott Bessent, have suggested a deal to reopen the Strait of Hormuz could be reached soon. Qatar, which has been mediating between the sides, said diplomatic efforts were ongoing, although no direct US-Iran talks were planned.