Iran Could Offer Oman Exit Proposal

Iran could consider allowing ships to sail freely through the Omani side of the Strait of Hormuz without risk of attack as part of proposals it has offered in negotiations with the United States, providing a deal is clinched to prevent renewed conflict, a source briefed by Tehran said.

The U.S.-Israeli war with Iran has resulted in the largest-ever disruption of global oil and gas supplies due to Iran's interruption of traffic through the strait, which handles about 20% of the world's oil and liquefied natural gas flows.

Hundreds of tankers ‌and other ships and 20,000 seafarers have been stuck inside the Gulf since the war began on February 28. A two-week ceasefire came into effect on April 8 and U.S. President Donald Trump said on Wednesday the war was close to over, but control over the Strait of Hormuz remains a key issue in negotiations.

The source, who declined to be identified due to the sensitivity of the matter, said Iran could be willing to let ships use the other side of the narrow strait in Omani waters without any hindrance from Tehran.

The source did not say whether Iran would also agree to clear any mines it may have placed in that stretch of water or if all ships - even those linked to Israel - would be allowed to pass freely.

But the source added that the proposal hinged on whether Washington was prepared to meet Tehran's demands, a condition that was central to any potential breakthrough with the Strait of Hormuz.

The White House did not immediately respond to a request for comment. Iran's Foreign Ministry was not immediately available to comment.

A Western security source said the proposal to let ships pass through Omani waters unhindered had been in the works although it was not clear if there had been any response from Washington yet.

The strait, a strip of water only 34 km (21 miles) wide between Iran and Oman, provides passage from the Gulf to the Indian Ocean and is a main route for energy supplies from the Middle East and other vital goods including fertilisers.

The proposal would be the first visible step by Tehran to pull back from more combative ideas floated in recent weeks, which included charging ships for passage through the international waterway and imposing sovereignty on the strait - seen by the global shipping industry as unprecedented unilateral steps in breach of maritime conventions.

Member countries of the U.N.'s International Maritime Organization agency meeting in London this week pushed back on the idea of a toll being imposed by Iran for ships using the strait, which the IMO has said would "set a dangerous precedent".

Iran's proposal would also be the first move towards restoring the status quo on sailing through the strait, which had been in place for decades despite periodic seizures by Iran of ships crossing the waterway.

A so-called two-way traffic separation scheme, which was adopted by the U.N.'s shipping agency in 1968 with agreement of countries in the region, created the current ship routing system that split sailing corridors through Iranian and Omani waters.

The U.S. imposed a blockade on oil ships leaving Iranian ports on Monday and broader shipping traffic has remained muted since February 28.

VESSELS OF ALL NATIONS BLOCKADED

The U.S. blockade of Iran has been fully implemented and is being enforced against vessels of all nations, White House press secretary Karoline Leavitt told a briefing on Wednesday.

The United States on Wednesday threatened to sanction buyers of Iranian oil and said it believed China would pause such purchases as Washington enforces a maritime blockade on Iran.

"We have told countries that if you are buying Iranian oil, that if Iranian money is sitting in your banks, we are now willing to apply secondary sanctions," U.S. Treasury Secretary Scott Bessent told reporters at the White House.

The U.S. maritime blockade on Iran began on Monday as the Iran war entered its seventh week. China previously bought more than 80% of Iran's shipped oil.

"We believe (that with) this blockade ... there will be a pause of Chinese buying," Bessent said.

The U.S. Treasury has also written to two Chinese banks and "told them that if we can prove that there is Iranian money flowing through your accounts, then we are willing to put on secondary sanctions," he added.

China's embassy in the United States did not immediately respond to a request for comment on Bessent's remarks.

The Trump administration has long said it is applying "maximum pressure" on Iran over its nuclear program and support for militants across the Middle East, ⁠though sanctioned oil has continued to reach China.

The U.S. Treasury Department also targeted Iran's oil transportation infrastructure, imposing sanctions on more than two dozen individuals, companies and vessels on Wednesday.

The move comes weeks after Washington issued a 30-day waiver of sanctions on Iranian oil at sea, which Bessent said last month allowed some 140 million barrels to reach global markets in a bid to relieve pressure on global energy supplies sparked by the war.

Bessent confirmed on Wednesday that the waiver, issued on March 20 and set to expire April 19, would not be renewed, a move Reuters reported on Tuesday.

The U.S. has also not renewed the waiver on Russian oil at sea which expired on Saturday.

Reuters has also reported that the U.S. Treasury sent letters to China, Hong ⁠Kong, the UAE and Oman, identifying banks that have allowed Iranian illicit activity and warning that they face punitive U.S. measures.

(Reuters)