Oman has put a proposal to Iran for a joint regional mechanism to manage the Strait of Hormuz, according to a Gulf source cited by Reuters. The passage carries almost 20% of the global energy supply, and the plan is said to have regional backing. It would introduce voluntary fees from users to finance navigation support, environmental protection, and search-and-rescue operations.
Regional Model and Funding Mechanism
The Gulf source said the model draws on the Strait of Malacca, where users contribute voluntarily to a fund for similar functions. Under the Omani proposal, Iran would not exercise sole control of the Strait of Hormuz.
Market Reaction
Markets softened after the report: WTI crude was trading 1.1% lower at about $80.30.
