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Oman Pitches Iran Voluntary Fee Plan for Hormuz Ships Modelled on Malacca Strait System
['Bernadette B. Tixon']
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Oman has handed Iran a Gulf-backed proposal that would let ships pay voluntary fees to use the Strait of Hormuz, rather than the mandatory charges Tehran has been pushing for since the waterway was disrupted by war.
How the Malacca Model Could Resolve the Hormuz StandoffOman's plan borrows from the Strait of Malacca, the shipping lane between Malaysia, Indonesia and Singapore.
A Western diplomat briefed on the Hormuz plan compared it to a voluntary carbon offset on a plane ticket, something buyers can opt into rather than a compulsory charge.
BREAKING: Oman has presented a proposal to Iran for a joint regional mechanism to manage the Strait of Hormuz with voluntary fees, a Gulf source told Reuters on Tuesday.
Under the Omani proposal, Iran would not have sole control of the strait, and fees would not be compulsory.