Iran and Oman Propose Solutions for Strait of Hormuz Management

Iran has put forward a counterproposal regarding the management of the Strait of Hormuz after rejecting an earlier plan from Oman for joint oversight. The proposal from Oman suggested an equal 50-50 control of the waterway, allowing each country jurisdiction over transit lanes adjacent to their shores. Iran's Deputy Foreign Minister Kazem Gharibabadi highlighted that the Omani proposal did not address Tehran’s security concerns sufficiently.

The Strait of Hormuz, a pivotal maritime route, is of significant importance as it is responsible for the transit of roughly one-fifth of the world's oil and liquefied natural gas supplies. Tensions escalated following military actions involving the United States and Israel against Iran, leading to the strait being temporarily closed by Tehran, which resulted in global supply issues. Furthermore, a memorandum of understanding between Iran and the US was signed on June 17, stipulating that shipping through the strait would resume without charges for a period of 60 days. However, disputes have emerged regarding control and navigational routes since the MoU was characterised by vague wording.

Gharibabadi made it clear that Iran’s revised proposal would grant it enhanced authority over shipping traffic. In this plan, Iran would manage shipping lanes through its territorial waters, while Oman would regulate a portion of the opposing lane.

“The proposal is for one route to reside fully within Iran's territorial waters, with part of the opposite route also traversing Iranian territory,” Gharibabadi stated.

Should Oman reject this proposal, Gharibabadi warned that the strait would remain closed, negating any return to prior arrangements which allowed for toll-free passage.

Oman is currently contemplating a new proposal that may feature three shipping routes: one through Iranian waters, an international corridor, and another within Omani territory. Reports indicate that Iran might show some flexibility in its negotiations. Key points that require resolution include the regulations regarding ship movements, the nature of fees assessed, oversight of any agreements, and mine clearance operations.

Concerns have also been raised regarding mine placements within the strait, although Iran has not confirmed such activities. The Islamic Revolutionary Guard Corps has previously published navigation routes intended to circumvent potential hazards.

The contentious issue of fees could prove critical, with Tehran reportedly proposing service charges as high as $1 million per ship, contrasting sharply with the voluntary fee system in the Strait of Malacca, which raises approximately $70 million annually. Iran has suggested that any fees collected would help fund reconstruction efforts arising from the recent military conflicts in the region.