The proposal would give Iran oversight of outbound vessel movements while leaving Oman responsible for granting clearance to ships departing through waters near its coast. A single corridor between the two countries would handle traffic in both directions, replacing an earlier Omani proposal for jointly managed transit that Tehran rejected.
The plan remains under negotiation and does not amount to an unconditional reopening of the strait. Iran is pressing for control over ships entering the Gulf and advance notification of outbound movements, citing national security concerns arising from the US-Israel war against Tehran and attacks on maritime traffic.
Oman has sought an arrangement that respects each country’s territorial waters while preventing a prolonged disruption to energy shipments and global trade. Muscat has repeatedly stressed freedom of navigation, safe passage and compliance with international maritime law, while maintaining its role as the principal mediator between Iran, Gulf governments and Western powers.
Iranian officials have described the proposed passage as temporary, potentially lasting between one and three months. The arrangement could be reviewed or extended depending on security conditions and progress towards a wider settlement. Operational details, including notification procedures, vessel inspections, insurance requirements and the treatment of sanctioned ships, have yet to be publicly finalised.
Tehran’s demand for advance notice would provide it with visibility over vessels leaving the Gulf without formally transferring Omani authority over territorial waters. Oman would retain responsibility for approving outbound passage, although shipowners may still face scrutiny over cargoes, ownership structures and links to countries involved in the conflict.
The negotiations have centred on a single two-way route designed to reduce the risk of ships entering disputed or heavily militarised waters. Iran had rejected a Gulf-backed plan that would have distributed management responsibilities more evenly, insisting that Oman and Iran alone should administer navigation within their respective jurisdictions.
Questions also remain over possible charges. Earlier proposals included voluntary service payments to support environmental protection and maritime security, but Oman has stated that conventional tolls should not be imposed. Washington has also opposed any arrangement that could be interpreted as allowing Tehran to charge for passage through an international strait.
The talks have gained urgency after attacks on commercial vessels near Oman. An LNG carrier travelling eastwards through Omani territorial waters was hit by an unidentified projectile late on July 31, causing an engine-room fire and loss of propulsion. Its crew escaped injury, and the Omani Coast Guard provided assistance. A large tanker nearby reported another projectile landing in the water only metres from the vessel.
Another ship reported being struck near the strait on Tuesday, reinforcing concerns that even a negotiated corridor would remain vulnerable without firm security guarantees. Shipowners must also consider electronic interference, crew safety, war-risk insurance premiums and the availability of naval assistance before resuming regular voyages.
Traffic through Hormuz has remained severely constrained since fighting intensified in late February. The strait connects Gulf producers with the Arabian Sea and carries roughly one-fifth of global petroleum consumption, making disruption there a major source of volatility for crude oil, liquefied natural gas and refined-fuel markets.
Oil prices rose by more than 2 per cent on Tuesday as traders assessed the uncertain diplomatic outlook and continuing threats to shipping. Brent crude climbed above $86 a barrel, while US crude traded above $82, reversing part of the previous session’s fall.
Saudi Arabia and the UAE have used pipelines leading to Red Sea and Arabian Sea terminals to reduce dependence on Hormuz, but available bypass capacity cannot fully replace the volumes normally shipped through the strait. Longer tanker voyages around Africa also increase freight costs, delivery times and pressure on vessel availability.
Iran has denied that direct negotiations with the United States are under way, contradicting President Donald Trump’s assertion that talks had resumed. Tehran says its discussions with Oman concern maritime safety and that reopening the strait cannot be separated from the broader military conflict.
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