Iran and Oman Propose Competing Plans for Strait of Hormuz Management

Iran has recently dismissed a proposal from Oman regarding the joint management of the strategically vital Strait of Hormuz, a crucial waterway for global oil and gas shipments. Instead, Iran has put forward its own proposal, aiming to secure greater control over the strait. Kazem Gharibabadi, Iran’s Deputy Foreign Minister, stated during a state broadcast that Oman’s initial proposal did not adequately address Tehran's concerns regarding oversight of this important maritime route. The Strait of Hormuz has been a focal point of tension between Iran and the United States, particularly since the onset of US-Israeli military actions against Iran that began in late February. Prior to the escalation of conflict, approximately 20% of the world’s oil and liquefied natural gas supplies were transported through this strait. Following the outbreak of hostilities, Iran took the significant step of closing the strait, which led to global supply chain disruptions. In response, the US implemented a blockade on Iranian ports, further complicating the situation.

The backdrop to the current negotiations includes a memorandum of understanding (MoU) signed on June 17 between Iran and the US, which was intended to allow shipping to resume through the strait without fees for a minimum of 60 days. However, the ambiguous language of the MoU has resulted in disputes over control of the strait, which is bordered by both Iranian and Omani territorial waters. This uncertainty has rekindled military confrontations, with the US launching strikes against Iranian targets and Iran retaliating against US military installations in the region. Although hostilities have temporarily ceased, diplomatic discussions regarding the strait's future continue to unfold. Gharibabadi disclosed that Oman had proposed a shared management framework, suggesting a 50-50 control arrangement where Iran would oversee transit lanes on its side and Oman would manage those along its coast. This model appears to draw inspiration from the governance structure of the Strait of Malacca, where countries involved collect voluntary fees from passing vessels to support navigation and environmental initiatives.