Oman has presented Iran with a Gulf-backed proposal to jointly manage the Strait of Hormuz, including the collection of voluntary fees from ships using the vital waterway, according to a Gulf source and a Western diplomat speaking to Reuters on Tuesday, July 28th, 2026.

The plan is seen as a possible foundation to resolve the trade disruptions caused by the ongoing US-Israeli conflict with Iran. The Strait of Hormuz is a critical passage through which about one-fifth of the world's oil and liquefied natural gas previously flowed.

Iran has expressed its desire to manage the strait alongside Oman, which controls the opposite shore, and to charge service fees to vessels passing through. However, Washington insists on returning to the pre-conflict status quo, where ships passed freely without payments, and considers mandatory fees illegal.

Earlier this month, Washington launched a renewed bombing campaign aimed at breaking Iran's control over the strait. Iran effectively closed the strait to all ships except its own following US and Israeli attacks on February 28th. A partial reopening agreement between Washington and Tehran collapsed in early July after Iran fired on ships using an unapproved channel.

President Donald Trump, who recently called off a planned two-week US bombing campaign in a strategic reversal, stated that “good talks” are ongoing with Iran but warned that strikes could resume if negotiations fail to produce results.

Sources