Oman has proposed managing traffic through the Strait of Hormuz through two separately controlled routes, CNN reported on Saturday, citing a source with knowledge about the talks.
The agreement, which is yet to be finalized, would keep both the northern and southern corridors of the strait open.
In the southern corridor, within Omani territorial waters, ships will be allowed to navigate freely under pre-war conditions.
In the northern corridor, in Iranian territorial waters, vessels would need to request permission from Tehran to pass. No tolls would be imposed under the deal.
This comes as Iran's Foreign Minister Abbas Araghchi and his Omani counterpart exchanged views on "appropriate mechanisms" for the safe passage of ships through the Strait of Hormuz in accordance with Article 5 of the Islamabad memorandum of understanding, Araghchi said on his Telegram channel on Saturday.
The teams in Oman reportedly discussed a potential statement on opening a “median lane” in the Strait of Hormuz for free and full movement, Axios reported.
Notably, US President Donald Trump demanded that Iran publicly acknowledge that it fired at ships in the Strait of Hormuz, Axios reported on Friday.
According to the report, three US officials with knowledge of the matter told reporters at a press briefing that the message was conveyed directly to Iranian officials.
Trump said earlier this weekend that the ceasefire was over, though he noted that Iran had requested to resume talks.
Trump claims Iran wants to renew talks, Tehran denies
“The Islamic Republic of Iran has asked us to continue 'talks.’ We have agreed to do so, but the United States has stated to them, in no uncertain terms, that the Cease Fire is OVER!” Trump asserted.
US officials have continued to argue that Iran’s failure to honor the MoU casts doubt on its willingness to implement a more complex agreement further down the line.
No attacks were reported on Friday or early Saturday; however, a senior Iranian source told Reuters that a call among Iran, the US, Qatar, and Pakistan had been agreed, and that mediators were trying to arrange it for Saturday while Araghchi is in Oman.
Iranian Foreign Ministry spokesman Esmail Baghaei said that Araghchi’s visit to Oman will focus on the Strait of Hormuz.
"Iran accepted a clear responsibility regarding the establishment of normal arrangements and maritime services related to ship traffic in the Strait of Hormuz, and we have been very determined and resolute in fulfilling that responsibility. Under the agreement, we were to consult and cooperate with Oman on this matter," he was quoted by Axios as saying.
Baghaei also denied on Friday that Iran had requested negotiations with the US, but said that Tehran had accepted a visit from Qatar.
CBS News and its UK partner, the BBC, both reported that US Vice President J.D. Vance, Secretary of State Marco Rubio, special envoy Steve Witkoff, and Trump's son-in-law Jared Kushner were expected to lead negotiations on Saturday with Araghchi.
Iran's Fars news agency later cited a source saying no negotiations would take place until the US retreated from its positions.