Iran and Oman are reportedly close to finalising an arrangement aimed at restoring commercial shipping through the Strait of Hormuz, one of the world's busiest energy corridors. However, key aspects of the reported proposal have become a point of disagreement with the United States, particularly over Iran's role in managing traffic and the idea of charging ships a "service fee".
The negotiations come after months of disruption to maritime traffic in the strategic waterway, which carried around one-fifth of global oil and natural gas shipments before the conflict affected shipping.
Proposal centres on separate shipping lanes
According to a report by The New York Times, the proposed framework would create separate shipping channels through the Strait of Hormuz. Inbound vessels heading towards the Persian Gulf would travel through a route managed by Iran, while outbound ships would use a lane closer to Oman.
Iranian officials quoted in the report said the plan includes a "service fee" to fund environmental protection, security and staffing, with the revenue to be shared equally between Iran and Oman.
The United States, however, has disputed that version of events. A US official familiar with the negotiations told The New York Times that any temporary navigation arrangement would not require Iran's permission and would not involve tolls or fees. According to the official, any revised shipping routes would be temporary while continuing to uphold freedom of navigation.
Trump and Iran offer conflicting accounts
Speaking at the White House, US President Donald Trump said discussions between Washington and Tehran had resumed and suggested that progress could come quickly.
“They’re going to go quickly one way or the other. It’s not very complex,” Trump said, adding that the Strait of Hormuz could reopen “literally by tomorrow”. He also described reopening the waterway as the “first phase” before talks move to Iran's nuclear programme.
Iran has publicly rejected that characterisation.
According to the Associated Press, Iranian Foreign Ministry spokesperson Esmail Baghaei said Tehran is not engaged in direct negotiations with Washington. He said discussions are only taking place with Oman and are focused solely on establishing a temporary route for safe navigation through the strait.
Trump later responded on Truth Social, writing: “Iranian Leadership is unbelievably duplicitous,” while maintaining that discussions with Tehran were continuing.
Iran's reported conditions
According to The New York Times, Iranian officials say the Strait of Hormuz would remain closed until two conditions are met. They have called for the United States to lift its naval blockade on Iranian ports in the Persian Gulf and for both countries to return to the framework outlined in the Islamabad memorandum of understanding.
Ali Vaez, Iran project director at the International Crisis Group, told The New York Times that Tehran views continued influence over the Strait of Hormuz as one of its key strategic gains following the conflict.
“Whatever solution leaves Iran in control of the strait will be a very tough sell for Trump but there is also no military solution to remove Iran’s control of the strait,” Vaez said.
“Trump’s options are between an unwinnable war and an unpalatable peace.”
Security concerns remain
Even as diplomatic efforts continue, security concerns in the region have not eased.
According to the Associated Press, the United Kingdom Maritime Trade Operations (UKMTO) said a cargo ship was struck by an unidentified projectile while sailing northeast of Oman's Musandam Peninsula near the Strait of Hormuz. The agency did not identify the vessel or report any casualties.
For India, developments in the Strait of Hormuz remain particularly significant. The country imports a substantial share of its crude oil from Gulf nations, making any long-term arrangement governing navigation through the waterway crucial for energy security, shipping costs and overall trade.