Muscat: Oman has secured the backing of Gulf states for a proposal that allows Tehran to collect voluntary fees for using the Strait of Hormuz. This initiative aims to mitigate oil trade disruptions caused by the ongoing US-Israeli conflict with Iran.
According to TRTworld.com, President Donald Trump recently halted a two-week US bombing campaign in a strategic reversal, citing 'good talks' underway with Iran. However, he warned of resuming strikes if negotiations do not yield results. Iran, meanwhile, denies any intent to resume discussions with the US. Earlier this month, the US launched a renewed bombing campaign to counter Iran's control over the strait, a critical passage for global oil and liquefied natural gas.
Iran had effectively closed the strait to foreign ships following US and Israeli attacks on February 28. Although a temporary agreement between the US and Iran partially reopened the strait, it collapsed in early July after Iran fired on vessels using an unauthorized channel. Iran expressed its desire to manage the strait jointly with Oman, which holds sway over the opposite shore, and proposed charging service fees for its usage. However, Washington aims to restore the pre-war status quo of free passage, arguing that mandatory fees would be illegal.
The Omani proposal suggests a system where Iran does not maintain sole control, and fees would remain voluntary. This approach mirrors the voluntary contribution system in Asia's Strait of Malacca, managed by Indonesia, Malaysia, and Singapore for navigation and environmental services.
Iran's Foreign Minister Abbas Araghchi engaged in discussions with Omani and Saudi counterparts, emphasizing regional cooperation for the Strait of Hormuz, as stated in an Iranian foreign ministry statement.
President Trump called off the airstrikes after military commanders advised against continuing the strategy. The 13-night US bombing campaign resulted in significant destruction in Iran, prompting retaliatory attacks on US bases and Gulf state infrastructure. Iran has stated its intent to cease fire if Washington does the same. Nevertheless, reports emerged of drone attacks in Jordan, Saudi Arabia, and northern Iran on Monday, with another drone downed in Jordan on Tuesday.
President Trump expressed optimism for a potential resolution to the five-month conflict, with a warning that US actions would resume if negotiations falter. He remarked on the possibility of reaching an agreement, stating, "I think there's a good chance that something could happen, and if it does, good, if it doesn't, we go back to doing what we were doing two days ago."
Iran maintains it has not sought new negotiations with the US, accusing Washington of violating the previously reached framework agreement intended to end the conflict. President Trump is set to meet with Israeli Prime Minister Benjamin Netanyahu in Washington. Although Israel participated in the initial bombing campaign, it has not been involved in subsequent peace talks, and recent tensions have strained relations between the two leaders. Trump's efforts to restrain Netanyahu from targeting Hezbollah in Lebanon have added complexity to the peace negotiations with Tehran.
The cessation of US bombing activities over the weekend led to an approximately 8 percent drop in oil prices on Monday, with the decline continuing into Tuesday. Brent crude futures fell over 2.5 percent, trading at around $86 a barrel by mid-morning on Tuesday.
In June, Washington and Tehran agreed on a framework for negotiations to address critical issues, including Iran's nuclear program. However, disputes persist over the memorandum's interpretation regarding the strait, with Washington advocating for free travel and Iran asserting its supervisory authority over transit through the waterway.