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MIDDLE EAST IRAN OMAN UNITED STATES ISRAEL SEA POLICY POLITICS

Iran Rejects Oman's 50-50 Strait of Hormuz Proposal, Demands Greater Control

REL_TIME: 30 Jul 2026 06:57Z · LANG: EN

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Iran Rejects Oman's 50-50 Strait of Hormuz Proposal, Demands Greater Control
Arisara from United States · CC BY 2.0 · source
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Iran has officially rejected a proposal from Oman for a 50-50 joint management split of the Strait of Hormuz, a critical maritime chokepoint. Tehran has instead issued a counterproposal seeking dominant oversight of both inbound and outbound shipping lanes. This diplomatic friction follows a period of conflict between Iran and a US-Israel coalition, which led to the strait's closure in February 2026. While Oman's plan, backed by the GCC, suggests a voluntary fee model similar to the Strait of Malacca, Iran is pushing for mandatory service fees of up to $1 million per ship to fund post-war reconstruction. Negotiations remain at an impasse as Iran warns the waterway will remain closed if its terms are not met.

// Background

The Strait of Hormuz was closed in February 2026 following US-Israeli attacks on Iran. A June 17 MoU aimed to reopen the waterway for 60 days, but vague terms regarding territorial control and transit routes led to renewed hostilities. Before the conflict, the strait was treated as an international waterway despite passing through Iranian and Omani territorial waters.

// Key Developments

  • Iran rejected Oman's 50-50 joint management proposal for the Strait of Hormuz.
  • Tehran's counterproposal demands control over the entire inbound route and part of the outbound route.
  • Oman's model is based on the Strait of Malacca's voluntary contribution system.
  • Iran proposes mandatory service fees of up to $1 million per ship for reconstruction.
  • The Strait of Hormuz handles approximately 20% of global oil and LNG supplies.
  • The Gulf Cooperation Council (GCC) has expressed support for Oman's regional management plan.

// Timeline

  1. US and Israel launch attacks on Iran; Strait of Hormuz is closed shortly thereafter.

  2. IRGC issues a map of permitted routes for approved shipping to avoid alleged mines.

  3. Iran and US sign a Memorandum of Understanding (MoU) to reopen the strait for 60 days.

  4. Fighting halts following a week of renewed US-Iran strikes and retaliatory attacks.

  5. Iran officially rejects Oman's 50-50 management proposal via state broadcast.

  6. GCC foreign ministers meet to discuss regional security and the Omani proposal.

// Perspectives

[Iran]

Seeks sovereign control and mandatory fees to leverage its strategic position and fund reconstruction.

[Oman]

Advocates for a collaborative regional mechanism with voluntary fees to restore stability and trade.

[GCC]

Supports Oman's regional management plan to ensure regional security and economic flow.

[United States]

Opposes Iranian unilateral control; market analysts suggest the US may reconsider its own fee impositions depending on the outcome.

// Quotes

“Oman proposed to us the creation of a route in the Strait of Hormuz, with 50 percent of it located in our territorial waters and 50 percent in Omani territorial waters.”

[Kazem Gharibabadi] — Iran's Deputy Foreign Minister explaining the rejected Omani proposal on state television.

“Our proposal is for one route to lie entirely within the territorial waters of the Islamic Republic of Iran... so that Iran can effectively exercise oversight over both inbound and outbound traffic.”

[Kazem Gharibabadi] — Detailing Iran's counter-demand for greater maritime authority.

“The plan had no chance of success.”

[Unnamed Iranian Official] — Dismissing the possibility of regional joint management to Reuters.
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