On July 28, 2026, Iran's Deputy Foreign Minister Kazem Gharibabadi announced Tehran's counter-offer during an interview with state television . The proposal consists of three key elements:
In practical terms, Iran demanded the lion's share of control, extending its zone further toward the Omani side rather than accepting the equal north-south split that Oman proposed . Gharibabadi said the Omani plan failed to address Tehran's security concerns until long-term regional stability is achieved .
The rejection has stalled Oman's mediation efforts. Gharibabadi described Tehran's counter-proposal as "final" and warned that the Strait of Hormuz would remain closed if Muscat rejects it . The two sides remain far apart on the core question of shared versus Iranian-dominated control, and Oman's role as a neutral broker is under increasing strain.
Iran's stance deepens the broader standoff with the United States. The Strait of Hormuz has been largely closed since February 28, 2026, when the US and Israel launched an air campaign against Iran . The Islamic Revolutionary Guard Corps (IRGC) has been using force to maintain the de facto closure . Tehran's refusal to accept shared governance signals that it views control of the strait as a strategic bargaining chip against the US, not a technical navigation issue. Even after a US-Iran memorandum of understanding was signed earlier in 2026, Iran has refused any arrangement that dilutes its unilateral authority .
The Strait of Hormuz remains effectively blocked "until further notice." The IRGC has declared that no commercial or military vessel may transit without Tehran's approval . As of late July 2026, no agreement is in sight, and global energy markets continue to face severe disruption.