Oman proposes Iran a “voluntary fee” plan for Hormuz, based on Malacca Strait model

Oman has presented Iran with a plan to manage the Strait of Hormuz, a critical waterway at the center of tensions between Tehran and Washington. The proposal includes a system of voluntary fees, inspired by the model used in the Malacca Strait in Asia. According to reports from Reuters and the Wall Street Journal, Oman’s plan would create a regional consortium. This group would oversee maritime safety, search and rescue, and other forms of cooperation. Funding would come from voluntary contributions by regional countries and the shipping and oil industries. An Iranian Foreign Ministry spokesman called recent talks with Oman “productive” and said “progress was made.” **What is the Malacca model?** The Strait of Malacca, located between Indonesia, Malaysia, and Singapore, is one of the world's busiest shipping lanes. It handles about 21% of global maritime trade, including a third of all seaborne oil. Since 1971, the three countries have managed the strait through a tripartite framework. They do not charge a mandatory toll. Instead, they ask ships to make voluntary contributions to a fund. This money pays for navigation aids like buoys and lighthouses, as well as environmental protection. Japan, China, India, and several Gulf states are among the contributors. **Can the model work for Hormuz?** Experts say the idea is attractive but faces major obstacles. Azifah Astrina, a professor at Indonesia’s Gadjah Mada University, says the Malacca model works because it was created in a time of regional cooperation. “The Strait of Hormuz faces a very different political and security environment,” she says. “Tensions are extremely high, and Iran is directly involved in an ongoing armed conflict.” She notes that the Malacca fund is designed for routine projects, not for security risks. In Hormuz, private companies and insurers may be unwilling to support a similar mechanism while the risk of military escalation remains high. **A history of tension** The Strait of Hormuz has been a flashpoint since the US and Israel launched a joint offensive in February. Iran closed the strait in retaliation, using it as its main lever of influence. The US wants a return to the previous status quo, where ships passed freely without payment. In early July, Iran resumed attacks on ships, prompting US airstrikes. The violence paused after President Trump ordered a halt to attacks, but a June ceasefire agreement has been shattered. **Iran’s position** Iran insists on maintaining control. Deputy Foreign Minister Kazem Gharibabadi said Iran rejected an Omani proposal for a shared route. Instead, Tehran wants the entire entry route under Iranian control, along with part of the exit route. Analyst Babak Vahdad says Iran is not just asking to participate in managing the strait. “It seeks predominant control over access to the Gulf,” he says. “No ship would enter the Gulf without passing through Iranian supervision.” The United Nations Convention on the Law of the Sea states that coastal states cannot charge for passage. Iran and the US are not signatories, but the treaty is widely considered international law. The head of the International Maritime Organization says any new mechanism must follow international rules.