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Iran Rejects Regional Strait of Hormuz Plan, Dimming Hopes for Shipping Deal

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Iran Rejects Regional Strait of Hormuz Plan, Dimming Hopes for Shipping Deal

Iran has rejected an Omani proposal for joint regional management of the Strait of Hormuz, weakening hopes that diplomacy could quickly restore normal traffic through one of the world’s most important energy corridors.

The plan, backed by Gulf states, would have established a cooperative mechanism for navigation, environmental protection and search-and-rescue services. Ships using the route would make voluntary contributions, drawing on arrangements used in the Strait of Malacca.

Tehran insists on control

A senior Iranian official said the regional-management proposal had no prospect of acceptance. Tehran argues that inbound traffic and part of the outbound lane should pass through waters it controls, citing national-security concerns and rejecting an equal division of responsibility with Oman.

Iran has also opposed the involvement of third countries in mine-removal operations, even if invited by Oman. The dispute leaves the established traffic-separation system—designed to organise ships moving in opposite directions—effectively suspended amid security fears.

Why Hormuz matters

Before the latest conflict and disruption, roughly one-fifth of globally traded oil and liquefied natural gas passed through the narrow strait. Even limited closures or threats can raise freight, insurance and energy prices far beyond the Gulf.

Oman has long acted as a mediator between Iran, Gulf governments and Western powers. Its proposal was viewed as a possible practical compromise that could restart shipping without requiring an immediate settlement of the broader conflict.

Diplomatic opening narrows

The rejection comes after the United States paused a campaign of air strikes, creating a brief window for negotiations. President Donald Trump said talks were progressing but warned that military action could resume if diplomacy failed. Iranian officials, however, have disputed suggestions that direct negotiations with Washington are under way.

Regional tensions remain high following attacks on shipping and energy infrastructure, as well as strikes involving Iran-backed groups and U.S. allies. Governments and commercial operators are now watching whether Oman can revise the plan or negotiate a narrower temporary arrangement.

This report is based on official statements and Reuters reporting. The feature image is an editorial reconstruction.

Sources: Reuters; International Maritime Organization; Oman Foreign Ministry.

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