Oman Proposes Gulf-Backed Plan for Voluntary Strait of Hormuz Fees

According to a Gulf source and a Western diplomat, Oman has proposed a plan to Iran, supported by Gulf nations, aimed at regulating the Strait of Hormuz through a system of optional fees. This initiative seeks to mitigate trade disruptions stemming from the US-Israeli conflict with Iran, which escalated following a US bombing campaign earlier this month. The proposal suggests that Iran would not have exclusive control, with fees being voluntary, akin to the arrangement in the Strait of Malacca. An Iranian official indicated that a response from Tehran is still pending. President Donald Trump, who halted a two-week bombing operation over the weekend, mentioned "good talks" with Iran but warned of resuming strikes if discussions do not progress. Following the US and Israel's attack on February 28, Iran effectively closed the strait to non-Iranian vessels. A partial reopening agreement reached in late June fell apart in early July when Iran targeted ships using an unauthorized route. Iran seeks to co-manage the strait with Oman and implement service fees, while Washington demands free navigation and deems mandatory fees unlawful.