Iran has proposed a temporary arrangement to reopen the , offering Oman a new shipping management framework while rejecting a proposal for equal control of the waterway.
The proposal comes amid heightened tensions following months of conflict involving Iran, the United States and Israel, and renewed efforts to restore commercial shipping through one of the world’s busiest energy chokepoints.
Here’s what is happening and why it matters.
What has Iran proposed?
Iran’s Deputy Foreign Minister Kazem Gharibabadi said Tehran has proposed a temporary traffic management system under which:
-Ships travelling in one direction would use routes through Iranian territorial waters.
-Part of the return traffic would also pass through Iranian-controlled waters.
-Oman would manage only part—not half—of the opposite lane.
According to Tehran, the arrangement would remain in place until broader regional security concerns are addressed.
Iran also warned that the Strait of Hormuz would remain closed if Oman rejected the proposal.
Why did Iran reject Oman’s proposal?
Oman has been acting as a mediator between Iran and Gulf Arab states.
According to Reuters, Muscat proposed:
-Equal management of shipping lanes by Iran and Oman.
-A system of voluntary navigation fees paid by shipping companies.
-A framework designed to restore commercial traffic after months of disruption.
Iran rejected the equal-sharing proposal, arguing that it fails to address its security concerns.
Tehran has also reiterated that it has never recognised the southern shipping route running close to Oman’s coastline as the permanent transit channel.
What is the dispute over shipping fees?
One of the biggest sticking points is .
Iran wants:
-Joint management of the strait with Oman.
-Service fees from commercial vessels using the route.
The United States opposes the idea.
Washington argues that international shipping should continue under the pre-war system, where vessels enjoyed free passage without mandatory payments.
, similar to , where ships can choose to contribute toward navigation safety and environmental protection.
How did the crisis begin?
The latest crisis followed the .
According to the developments:
-The aimed at weakening Iran’s control over the Strait of Hormuz.
-Iran responded by effectively closing the strait to most foreign shipping after the attacks.
-A June agreement partially reopened the route.
-That arrangement collapsed in early July after Iran fired on vessels using a shipping lane it did not recognise.
Since then, commercial navigation has remained highly restricted.
What role is Donald Trump playing?
President after military advisers concluded the operation had achieved its objectives.
However, .
Speaking ahead of , said negotiations with Iran were progressing but .
He also repeated threats against , saying it could become a future military target if no agreement is reached.
Iran, however, insists it has not resumed negotiations with Washington and accuses the United States of violating the June framework agreement.
Why are frozen Iranian assets also part of the dispute?
The shipping talks coincide with another major dispute.
Iran’s military recently warned that it would deny passage through the Strait of Hormuz to vessels belonging to countries or companies that accept compensation from Iranian frozen assets.
The warning followed and cargo allegedly damaged during the conflict.
Tehran called the proposal illegal and warned it could retaliate against shipping linked to countries participating in such a scheme.
What about the Houthis?
The regional security situation has become even more complicated after .
On July 20, the .
They later claimed responsibility for launching ballistic missiles at a Saudi oil tanker, forcing it to turn back.
The attacks have expanded concerns beyond the Strait of Hormuz to the wider Middle East shipping network.
Why is the Strait of Hormuz important?
The connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, making it one of the world’s most critical maritime routes.
Before the conflict, roughly 20% of global oil exports and a significant share of liquefied natural gas (LNG) passed through the narrow waterway.
Any disruption to shipping through the strait can immediately affect global energy supplies, insurance costs, freight rates and crude oil prices.
