Oman Proposes Plan to Unblock the Strait of Hormuz

The Gulf countries have supported Oman's initiative to resolve the crisis in the Strait of Hormuz, which has arisen from the conflict between the United States, Israel, and Iran. The plan allows Tehran to collect voluntary fees from civilian vessels, which is expected to restore global transit of oil and liquefied gas, a fifth of which passes through this strait. Iran, which has blocked the strait since the end of February, aims to control shipping in cooperation with Oman, while Washington insists on free passage. The proposed mechanism for voluntary contributions is similar to the system in the Malacca Strait. U.S. President Donald Trump halted airstrikes against Iran, citing progress in negotiations, but promised to resume bombings if they fail. The escalation of the situation has led to destruction in Iran and retaliatory actions against American bases. News of the suspension of strikes and a diplomatic resolution has caused a drop in oil prices, with Brent futures falling to $86 per barrel. Traders are anticipating the fulfillment of June agreements between Washington and Tehran regarding bases for a broader agreement, which is expected to be reviewed by the end of August.