Oman has presented Iran with a Gulf-backed proposal to jointly manage the Strait of Hormuz, including a system of voluntary fees for ships using the strategic waterway, a Gulf source and a Western diplomat told Reuters on Tuesday.
The proposal could provide a basis for ending the disruption to shipping through the strait caused by the recent US-Israeli war with Iran.
President Donald Trump, who abruptly called off a two-week US bombing campaign over the weekend, said "good talks" were under way with Iran but warned that US strikes would resume if negotiations failed. Iran, however, has denied seeking to restart talks with the United States.
Washington launched its latest bombing campaign earlier this month in an effort to break Iran's control over the Strait of Hormuz, through which around one-fifth of global oil and liquefied natural gas shipments passed before the conflict.
Iran effectively closed the strait to all but its own vessels after the United States and Israel launched strikes on February 28. A US-Iran agreement reached last month partially reopened the waterway, but the arrangement collapsed in early July after Iran fired on vessels using a shipping channel it does not recognize.
Tehran has said it wants to jointly manage the strait with Oman, which controls the opposite shore, and collect service fees from ships using the route. Washington wants to restore the pre-war arrangement, under which vessels transited freely without paying fees, arguing that mandatory charges would violate international law.
Under Oman's proposal, Iran would not have sole control over the strait and any payments would be voluntary, the Gulf source and Western diplomat said.
The proposed mechanism would be similar to the system used in the Strait of Malacca, where Indonesia, Malaysia, and Singapore invite ships to make voluntary contributions to support navigation, environmental protection, and search-and-rescue operations.
The Western diplomat compared the proposal to voluntary carbon offset payments offered to airline passengers when purchasing tickets.
The Gulf source said Iran had not formally responded to the proposal as of Monday evening. Omani officials met Iranian counterparts in Tehran over the weekend.
Iranian Foreign Minister Abbas Araqchi discussed the Strait of Hormuz with his Omani and Saudi counterparts on Monday, stressing the importance of regional cooperation, according to Iran's Foreign Ministry.
Trump said he ended the latest US bombing campaign after military commanders advised that the operation had achieved its objectives. The 13-night campaign killed dozens of people in Iran and damaged bridges, tunnels, and military installations across the country's south.
Iran responded by attacking US military bases in neighboring countries, killing four American service members, and launching strikes on civilian infrastructure in Gulf states, which Tehran said were retaliation for US attacks on civilian targets.
Iran has said it will refrain from further attacks as long as Washington does the same. However, drone attacks were reported in Jordan, Saudi Arabia, and northern Iran on Monday, while Jordan reported intercepting another drone on Tuesday.
Speaking on Monday, Trump expressed optimism about reaching a deal to end the five-month conflict but warned that military action would resume if diplomacy failed.
"I think there's a good chance that something could happen, and if it does, good. If it doesn't, we go back to doing what we were doing two days ago," he said.
Iran maintains it has not sought fresh negotiations with the United States, accusing Washington of violating the framework agreement reached last month for talks aimed at ending the conflict.
Trump is scheduled to meet Israeli Prime Minister Benjamin Netanyahu in Washington on Tuesday. Although Israel participated in the initial bombing campaign, it has not taken part in the subsequent diplomatic efforts, and recent ties between the two leaders have been strained.
Trump has also restrained Netanyahu from launching attacks in Lebanon against the Iran-backed Hezbollah group, fearing such action could undermine negotiations with Tehran.
Oil prices fell sharply after Trump announced the end of the bombing campaign, with Brent crude dropping about 8 percent on Monday and extending losses on Tuesday to trade at around $86 a barrel.
Washington and Tehran agreed in June on a framework for negotiations, with formal talks expected by the end of August to address issues including Iran's nuclear program.
However, the two sides remain divided over the agreement's provisions concerning the Strait of Hormuz. Washington says the deal requires Iran to allow unrestricted passage, while Tehran argues it gives Iran authority to oversee transit through the waterway.