Gulf states ready to pay Iran for passage through Strait of Hormuz, Reuters reports
Photo: Ships in the Strait of Hormuz (Getty Images)
Oman has presented a plan for paid shipping through the Strait of Hormuz, under which Iran would also receive a share of the proceeds, according to Reuters.
Passage through the Strait of Hormuz will no longer be free
Oman has presented Iran with a proposal, backed by the Gulf states, to introduce voluntary transit fees for ships using the Strait of Hormuz.
The proposal was disclosed to Reuters on July 28 by a Gulf source and a Western diplomat.
It could provide the basis for resolving trade disruptions in the strait caused by Israel's war against Iran.
Under Oman's proposal, Iran would not exercise sole control over the waterway, and any payments would be voluntary, Reuters reported, citing its sources.
This system will be similar to the one operating in the Strait of Malacca in Asia, where Indonesia, Malaysia, and Singapore ask vessels to make voluntary contributions to help fund maritime navigation, environmental protection, and search and rescue operations.
A Gulf source said that, as of the evening of July 27, Iran had not yet given an official response to the proposal. Omani officials met with Iranian counterparts in Tehran over the weekend.
Situation in the Strait of Hormuz
Following US and Israeli strikes on February 28, Iran effectively closed the strait to all vessels except its own.
A US-Iran agreement reached in June partially restored shipping through the waterway. However, operations were disrupted again in early July after Iran opened fire on ships.
Iran has said it wants to jointly manage the strait with Oman, which controls the opposite shore, and to charge vessels for using the passage.
Washington wants to restore the pre-war status quo, under which ships could pass freely without paying any fees. US officials argue that imposing mandatory transit charges would be illegal.
US President Donald Trump said talks with Iran were underway but warned that US strikes could resume if the negotiations fail. Iran, however, has denied that it is attempting to restart negotiations with Washington.
Oil prices
The end of the US bombing campaign over the weekend pushed oil prices down by about 8% on Monday, with the decline continuing on Tuesday.
Brent crude futures fell by more than 2.5%, trading at around $86 per barrel by midday Tuesday.
As reported earlier, on July 22, Trump said the US military would respond to Iranian attacks in the Strait of Hormuz. The conflict has continued to escalate.
On July 16, the United States resumed active military operations against Iran following the blockade of the Strait of Hormuz.
