Tehran has ruled out Oman's proposal for regional joint management of the Strait of Hormuz, saying it has no chance of success, a senior Iranian official told Reuters on Wednesday.

Instead, Iran proposed to Oman a temporary arrangement to reopen the Strait of Hormuz under which one direction of traffic would pass through Iranian waters, and part of the opposite route would also be in Iranian waters, Deputy Foreign Minister Kazem Gharibabadi told state television on Tuesday.

Despite ongoing negotiations, diplomats report overall progress 

Two Middle Eastern diplomats said Tuesday that there had been progress in efforts to resolve the crisis surrounding the Strait of Hormuz, although no final agreement had been reached.

Gharibabadi said Tehran rejected an Omani proposal for an equal division of transit routes between the two countries, saying such a plan did not address Tehran's security concerns as long as long-term regional stability is not achieved.

Discussing the proposal with Reuters, another Iranian official noted that despite Tehran's rejection of the 50-50 arrangement, it still views Oman as a valuable neighbor.

Vessels at the Strait of Hormuz, as seen from Musandam, Oman, July 26, 2026.
Vessels at the Strait of Hormuz, as seen from Musandam, Oman, July 26, 2026. (credit: REUTERS/STRINGER)

The official also accused the US and Saudi Arabia of pressuring Oman to advance what Tehran described as unrealistic plans for the Strait of Hormuz.

Earlier, Oman presented a proposal to Iran for joint regional management of the Strait of Hormuz with shipping firms paying voluntary fees.

Talks advance on temporary Strait of Hormuz solution

Gharibabadi said the Strait of Hormuz would remain closed if Muscat rejected Iran's proposal, adding that Tehran had never recognized the southern route along Oman's coast.

The emerging proposal, the two diplomats said, focuses on a temporary solution establishing a central shipping route through the strait, running between Omani and Iranian territorial waters.

They stressed the proposal would be only a temporary arrangement.

Talks remained ongoing, the two diplomats said, adding that meaningful progress had been made.

According to a report in The Wall Street Journal, the negotiations were narrowly focused on shipping and not meant to put a full stop to the conflict. Mediators instead hoped that a temporary agreement on the contentious shipping issue would cool tempers and ultimately lead to more advanced talks, the report added. 

Iran and Oman are still far from reaching an agreement on some aspects of the situation, including whether to charge transit fees, mediators and one US official told the WSJ

This comes after US President Donald Trump and Prime Minister Benjamin Netanyahu met in Washington DC on Tuesday.

"It was a very positive meeting. You could see the chemistry between the leaders," a source familiar with the details told The Jerusalem Post

Ariella Roitman and Goldie Katz contributed to this report.