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Oman proposes a joint mechanism for Strait of Hormuz fees

The proposal would include voluntary fees and would limit Iran from exercising sole control of the Strait of Hormuz, per a Gulf source.

Reported · Written up by our desk · Central Banks

Oman has presented Iran with a proposal for a joint regional mechanism to manage the Strait of Hormuz, a passage that is described as vital to almost 20% of global energy supply, according to a Gulf source cited by FXStreet.

Under the plan, the mechanism would rely on a model similar to the Strait of Malacca, where users contribute voluntarily to support activities including navigation funding, environmental protection, and search and rescue.

The source also said the proposal has regional backing and would keep Iran from having sole control of the Strait of Hormuz under the arrangement.

FXStreet also noted that the market backdrop for major FX pairs and related assets on Tuesday included cautious positioning ahead of the Federal Reserve policy decision due on Wednesday.

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