Iran Rejects Oman's Two-Corridor Plan for Strait of Hormuz, Demands Dominant Control of Shipping Lanes

Iran has formally rejected Oman's two-corridor proposal for the Strait of Hormuz and instead demanded a configuration that would keep the vast majority of shipping lanes under Iranian control. The counter-proposal, announced on July 28, 2026, threatens to prolong the blockade of one of the world's most critical energy chokepoints and deepen the strategic standoff between Iran, the United States, and Gulf states.

What Oman Proposed

Oman's plan, unveiled in mid-July 2026, envisioned dividing the Strait of Hormuz into two separately managed corridors: a northern corridor passing through Iranian territorial waters that would require Tehran's advance approval, and a southern corridor through Omani waters that would allow free navigation under pre-war conditions . The proposal had regional backing and aimed to replace Iran's unilateral control with a shared management mechanism that would also introduce an optional system of "voluntary fees" from passing vessels .

Iran's Counter-Proposal

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:

• One direction of traffic (inbound to the Persian Gulf) would pass entirely through Iranian waters.
• Part of the opposite route (outbound) would also remain in Iranian waters.
• Iran frames this as an "interim" or "temporary" arrangement to reopen the strait, but insists it must exercise effective oversight over key parts of both shipping lanes even under a permanent deal .

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 .

Implications for Diplomacy

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.

Broader US-Iran Conflict

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 .

Status of the Waterway

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.