Oman turned down the offer from Iran’s Islamic regime, which sought to split oversight of the key maritime passage that connects the Gulf to the Arabian Sea. The proposal was discussed during a visit by Iranian Foreign Minister Abbas Araghchi to Oman, a Gulf state that has itself been targeted in past regional tensions involving Iran.
The Strait of Hormuz, one of the world’s most critical energy chokepoints, continues to be at the centre of heightened geopolitical friction. The rejection of Iran’s proposal highlights persistent mistrust between Tehran and several Gulf Cooperation Council states, many of which remain closely aligned with the United States on regional security issues.
The Institute for the Study of War (ISW) assessed that if Iran had secured Oman’s agreement, Tehran could have attempted to present the arrangement to Washington as a new framework for easing tensions without compromising what it considers its core red lines.
Gulf states’ resistance is largely driven by concerns over sovereignty, security control, and broader geopolitical alignment. Gulf analyst Arash Azizi noted that regional governments are wary that granting Iran any form of control over the strait could damage their strategic relationship with the United States. He also observed that regional political narratives surrounding Iran are shifting, even among actors previously seen as more sympathetic to Tehran’s positions.
Azizi added that Qatar, for example, has moved toward a firmer stance against Iranian narratives, with pro-regime commentators increasingly critical of regional media outlets such as Al Jazeera.
Despite the rejection, some analysts suggest that Gulf states might still consider limited forms of cooperation depending on the structure of any agreement. Iran has reportedly explored proposals that could involve joint custodianship of the waterway, which could generate significant revenue through transit fees.
A J.P. Morgan analysis estimated that Iran could raise between USD 70 billion and 90 billion annually by imposing tariffs on vessels passing through the strait, with earlier proposals suggesting charges of $2 million per ship.
However, a source familiar with mediation efforts told the New York Post that Gulf states are unwilling to bear the financial burden of Iran’s reconstruction or allow Tehran to control or tax maritime traffic.
The dispute unfolds against a backdrop of worsening economic conditions inside Iran. The Iranian rial recently reached a record low, while inflation and job losses continue to intensify pressure on the economy. Authorities fear that economic deterioration could trigger renewed unrest similar to past protest waves.
Iran’s Supreme Leader, referred to in the report as Mojtaba Khamenei, reiterated that the country would not relinquish control over the strait, stressing that foreign powers “have no place there except at the bottom of its waters,” underscoring Tehran’s continued strategic position on Hormuz control.
