• Under new proposal, Iran will not exercise sole control, fees will be voluntary
• Tehran says will consider ‘any action’ to keep straits under control
• Oil falls to lowest level in a week
• Saudis fend off drone attacks from ‘Iraq-based militias’
• Trump meets Netanyahu for the first time since war began; warns of more attacks if deal not reached

WASHINGTON/TEHRAN: After the US and Iran stopped their attacks, Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using the vital energy route.

The Omani proposals are intended to serve as a basis to end the disruption to trade through the strait caused by the US-Israeli war on Iran. President Donald Trump, who abruptly called off a two-week US bombing campaign over the weekend in his latest strategic U-turn, said there were “good talks” underway with Iran but threatened to restart strikes unless negotiations deliver. Iran denies seeking to resume talks with the US.

Iran’s Deputy Foreign Minister Kazem Gharibabadi said Tehran had proposed to Oman that Iran manage one-way shipping through its side of the strait and Muscat manage part but not all of the opposite direction. Under the Omani proposal, Iran would not exercise sole control, and fees would be voluntary, the Gulf source and Western diplomat briefed on the matter told Reuters.

The system would be analogous to the one in place on Asia’s Strait of Malacca, where Indonesia, Malaysia and Singapore ask ships to pay voluntary contributions to fund navigation, environmental protection and search-and-rescue operations.

Tehran will consider “any action” to maintain control over the Strait of Hormuz, including the resumption of war, Al Jazeera quoted the Iranian deputy foreign minister as saying. Gharibabadi said Iran would “no longer be able to exercise sovereignty” if it opens up a southern lane closer to the Omani coast, where it has been shooting at ships, Fars news agency reported. “Any European ship that wants to come near the Strait of Hormuz is our legitimate target,” he added.

Separately, the Gulf Cooperation Council foreign ministers met via video call on Tuesday to discuss the latest developments in the conflict, including ways to intensify cooperation on issues related to freedom and safety of vessels through the waterway, a statement from the Qatari Foreign Ministry said.

Oil markets

As hopes of a diplomatic solution that would allow shipping to resume in the Strait of Hormuz grew, oil prices fell, settling at their lowest levels in over a week.

Brent crude futures fell $8.42, or 8.7pc, to settle at $88.36 a barrel, the lowest since July 17. US West Texas Intermediate crude futures fell $6.70, or 7.5pc, to close at $82.61, the lowest since July 17. Brent futures last week surpassed $100 a barrel as the conflict, which has reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea. This hindered exports from the world’s top exporter, Saudi Arabia, via the Bab el-Mandeb strait to Asia.

Industry analysts said they expect oil markets to be highly volatile in response to updates around the unofficial ceasefire between the U.S. and Iran, and warned that the physical flow of oil remains constrained, despite a fragile truce.

Saudis fend off drones

Meanwhile, Saudi Arabia’s defence ministry said late on Tuesday night that its forces had intercepted drones targeting oil facilities in the east, blaming groups in Iraq for the launches for a second day running.

The ministry’s spokesman, Turki al-Maliki, said that “aerial defences intercepted and destroyed several drones that attempted to target oil installations”, adding that “these new terrorist attacks were launched from Iraqi territory and carried out by militias linked to Iran”.

Trump meets Netanyahu

The US president also met Israeli Prime Minister Benjamin Netanyahu in Washington for the first time since both allies declared war on Iran.

The closed-door meeting lasted nearly an hour and a half and was “positive and productive,” according to White House press secretary Karoline Leavitt. The White House did not immediately offer more details.

According to an X post by Fox News, the high-stakes talks reportedly focused on what comes next after recent strikes on Iran and how the US and Israel move forward strategically. “Netanyahu was also expected to present intelligence that Iran is actively expanding its nuclear sites, even as Tehran continues to avoid direct peace talks with the United States despite Trump’s optimism about diplomacy,” the US media outlet reported.

Despite signs of tension between the two ahead of the meeting, Netanyahu was effusive afterwards and called it “excellent” in a post on his Instagram profile, according to the AP news agency.

Before the meeting, Trump said the US was in a strong position right now. He reiterated he was prepared to strike more Iranian targets, but said he would prefer to avoid doing so.

“I think about 91 million people without power, without bridges, would have to live, and it’s a very, very delicate balance. So I think we have a very strong position right now, they know I’m going to do that if they don’t make a deal.”

Trump also repeated a threat to potentially target Ira­n’s Pickaxe Mountain, a fortified facility buried deep un­­d­­erground near one of Tehran’s main nuclear sites. “If we don’t make a deal we’ll take it out very easily.”

Published in Dawn, July 29th, 2026