Oman presents Hormuz fee proposal to Iran
概要:Oman has proposed a joint regional mechanism to Iran for managing the Strait of Hormuz, involving voluntary fees from users to fund navigation, environmental protection, and search and rescue, according to a Gulf source cited by Reuters. The proposal, which has regional backing, is modeled on the Strait of Malacca and would prevent Iran from exercising sole control over the vital waterway through which nearly 20% of global energy supply passes. Following the news, WTI oil prices came under mild selling pressure, trading 1.1% lower at around $80.30.
According to a Gulf source, Oman presented a proposal for a joint regional mechanism to Iran to manage the Strait of Hormuz, a vital passage for almost 20% of the global energy supply, with voluntary fees, Reuters report.
Additional remarks
Omani proposal has regional backing.
Proposal is based on strait of Malacca, where those who use Strait voluntarily contribute to fund navigation, environmental protection, search and rescue, gulf source says
Iran would not exercise sole control of Strait of Hormuz under the proposal.
Market reaction
The WTI Oil price faces slight selling pressure after the news release. At press time, the WTI Oil price trades 1.1% lower to near $80.30.
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