Oman has presented Iran with a Gulf-backed plan to establish a joint mechanism for managing the Strait of Hormuz [1].

The proposal seeks to reopen the critical sea lane, which has been effectively closed since the start of the U.S.–Iran war. A prolonged shutdown threatens global energy security by blocking the export of Gulf oil, gas, and fertilizer [1].

According to the plan presented on July 28, 2026 [1], the joint mechanism would allow Iran to collect voluntary tolls from ships transiting the waterway. This arrangement is designed to provide a diplomatic framework for resuming maritime traffic while addressing the security and economic concerns of the regional powers [1].

The Strait of Hormuz serves as the narrow sea lane between Oman and Iran, linking the Persian Gulf with the Gulf of Oman [1]. Because of its geography, it is one of the most important transit points for global energy supplies.

Reports on Iran's initial response to the proposal are conflicting. Some reports said that Iran has proposed a temporary deal with Oman but warned that the waterway will remain shut if the terms are rejected [2]. Other reports said that Iran has rejected the Omani proposal and is demanding greater control over the strait [3].

Oman continues to act as a mediator between the warring parties to mitigate the severe economic impact on regional exports [1]. The success of the plan depends on whether Iran accepts the voluntary toll system as a sufficient incentive to allow the reopening of the lane [1].

“Oman has presented Iran with a Gulf-backed plan for a joint mechanism to manage the Strait of Hormuz.”

The proposal represents a strategic attempt by Gulf states to decouple global energy markets from the geopolitical conflict between the U.S. and Iran. By introducing a voluntary toll system, Oman is attempting to provide Iran with a financial and administrative incentive to reopen the strait without requiring a full diplomatic resolution to the broader war. If successful, this mechanism could stabilize oil and LNG prices, though the contradictory reports on Iran's response suggest that sovereignty and control over the waterway remain primary sticking points.