Regional powers have endorsed an Omani proposal allowing Iran to collect voluntary user fees in the Strait of Hormuz, marking a potential path toward resolving disruptions to global oil trade. The initiative comes as the United States pauses military operations and signals openness to negotiations.
Gulf states have thrown their support behind a proposal from Oman that would permit Iran to collect voluntary fees from vessels transiting the Strait of Hormuz, according to a Reuters source on Tuesday. The arrangement would represent a middle ground in the escalating dispute over the strategic waterway, through which roughly one-fifth of the world's oil and liquefied natural gas passed before recent hostilities intensified.
Under the Omani framework, Iran would not exercise exclusive control over the strait, and any charges would remain optional rather than mandatory. Gulf officials have compared this model to the voluntary contribution system operating in Asia's Strait of Malacca, where Indonesia, Malaysia and Singapore collect user fees for navigation and safety services. Iran has previously stated its preference to jointly manage the strait alongside Oman, which shares its coastline, though Washington maintains that mandatory tolls would violate international law and has sought to restore pre-war conditions allowing unrestricted passage.
The diplomatic initiative follows President Trump's decision to suspend a two-week bombing campaign over the weekend. Trump indicated on Monday that negotiations were progressing favourably but warned strikes would resume if talks failed to produce results. In contrast, Iran's government has denied actively pursuing negotiations with the United States, citing Washington's alleged violation of a June framework agreement on resolving the conflict.
The pause in military operations triggered an approximately 8% decline in oil prices on Monday, with Brent crude continuing downward momentum at around $86 per barrel by Tuesday morning. Iran's Foreign Minister discussed the Strait of Hormuz with counterparts from Oman and Saudi Arabia, emphasizing the importance of regional cooperation. However, disputes persist regarding the interpretation of June's memorandum on the strait, with fundamental disagreements between Washington and Tehran on transit authority and freedom of passage.
