Iran has rejected Oman’s proposal for a new management system for the Strait of Hormuz. The decision reduces hopes for a quick diplomatic breakthrough. Oman presented the proposal to Iranian officials over the weekend. Gulf states reportedly support the plan. The proposal would create a joint regional management system for the strait. It would replace sole Iranian management with a broader regional framework. It also calls for voluntary contributions from shipping companies instead of mandatory transit fees. The money would fund navigation services, environmental protection, search and rescue operations, and other maritime services. Oman based the proposal on the Strait of Malacca . Indonesia, Malaysia and Singapore jointly manage that waterway. Shipping companies also make voluntary contributions to support navigational services there. However, Iran rejected the proposal. A senior Iranian official told Reuters the plan had “no chance of success.” The official said Iran and Oman should manage the strait according to their territorial waters. He rejected any role for other regional countries. He also said Iran should control the entire inbound shipping lane and part of the outbound lane. In addition, he argued that routes through Omani waters could be unsafe for shipping. The Strait of Hormuz remains a key issue in regional negotiations. Before the conflict, the waterway carried around 20% of global oil and LNG trade . Shipping has changed since the war began. The IMO’s recognised traffic separation scheme is currently unusable because of security risks. Iran advises ships to sail closer to its coastline. Meanwhile, the United States offers assistance to vessels using a route closer to Oman. The International Maritime Organization (IMO) said it is not involved in the discussions. It added that member states must review any proposal for new shipping routes or traffic management measures. Earlier this month, Oman told the IMO it does not support