Oman has presented Iran with a Gulf-backed management plan that includes a voluntary fee for transits through the Strait of Hormuz. According to Reuters, the plan is based on Iran not having sole control over the strait.
A senior Iranian source said Tehran has not yet responded to the proposals from Oman. The offer is intended to provide a basis for ending the damage to trade in the strait caused by the U.S.-Israeli war against Iran.
After the U.S. and Israel launched attacks on February 28, Iran effectively closed the strait to all ships except its own. Last month's partial reopening agreement collapsed in early July after Iran fired on vessels using a transit channel it had not approved. Iran previously stated that it wanted to manage the strait jointly with Oman and charge service fees to ships using it. Washington, meanwhile, demands a return to the pre-war free passage regime and argues that a mandatory fee would be illegal.
Voluntary fee and Malacca model
According to a Gulf source and a Western diplomat speaking to Reuters, fees under Oman's proposal would be voluntary. The system is likened to the one in Asia's Malacca Strait, where Indonesia, Malaysia, and Singapore request voluntary contributions from ships to fund navigation, environmental protection, and search-and-rescue operations.
The Western diplomat compared the model to carbon taxes on plane tickets where passengers can optionally offset their emissions. According to a statement from Qatar's Foreign Ministry, Gulf Cooperation Council foreign ministers met via video conference on Tuesday to discuss recent developments in the conflict and ways to enhance cooperation on freedom of navigation and security in the waterway.
Iran rejects Trump's asset plan
According to Iranian state media, the Iranian joint military command has once again rejected Trump's proposal that damages to ships be paid from frozen Iranian assets. The command announced that any country or company accepting such payments would not be allowed passage through the Strait of Hormuz by the Iranian armed forces.
Trump threatens new strikes
U.S. President Donald Trump halted the new airstrike campaign after military commanders advised that the strategy had reached its limit. Speaking to Fox News, Trump said, "I think we're in a very strong position right now," and reiterated his readiness for new attacks if no deal is reached. Trump also indicated he could target the Pickaxe Mountain underground facility near one of Tehran's main nuclear sites, saying, "If we don't make a deal, we'll take care of that very easily."
Iran says it is not seeking new negotiations with the U.S. and accuses Washington of violating last month's framework agreement to end the war. Iran also says it will maintain the ceasefire as long as Washington does not attack, while on Monday drone attacks were reported in Jordan, Saudi Arabia, and northern Iran; on Tuesday Jordan announced that another drone had been shot down.
Oil prices drop sharply
The halt of U.S. bombing over the weekend caused about an 8% drop in oil prices on Monday, with the decline continuing on Tuesday. Brent crude oil futures fell about 1.6% to around $87 per barrel on Tuesday morning. Washington and Tehran had agreed in June on a framework that envisaged starting negotiations by the end of August to resolve key issues such as Iran's nuclear program.
