Could The ‘Malacca Model’ Offer A Way Out Of The Hormuz Fee Deadlock? Europe Weighs Proposal

Last Updated:July 11, 2026, 14:50 IST

Europe is studying a proposal to allow navigational fees in the Strait of Hormuz, provided the charges are voluntary and backed by the UN maritime agency.

Europe is examining proposals that could allow navigational fees to be charged in the Strait of Hormuz, provided the payments are voluntary and have the backing of the International Maritime Organization, the UN agency that regulates global shipping, The Guardian reported.

The proposals are being considered amid opposition to compulsory tolls, which critics fear could give Iran greater control over passage through the strategic waterway.

Britain’s Deputy Prime Minister David Lammy has warned that imposing compulsory tolls would be disastrous. However, some of his cabinet colleagues believe payments for specific navigational services are permissible in natural waterways, including the Strait of Malacca and the English Channel.

According to The Guardian, Oman has developed a proposal with British lawyers that adapts principles used in the Strait of Malacca. Muscat has offered to send legal experts to Tehran to explain the plan in detail.

Iranian Foreign Minister Abbas Araghchi arrived in Muscat on Saturday for talks with his Omani counterpart over the Strait of Hormuz. Iranian foreign ministry spokesperson Esmaeil Baghaei said the visit was “part of ongoing bilateral consultations between Iran and Oman on regional developments, particularly the issue of the Strait of Hormuz".

The foreign ministers would “discuss and exchange views on establishing appropriate mechanisms to ensure the safe passage of ships through the Strait of Hormuz", Baghaei said.

The visit comes as intermediaries attempt to revive the faltering diplomatic process after recent strikes between the United States and Iran.

Why Oman’s Proposal Matters

Oman controls most of the navigable waters in the Strait of Hormuz and opposes the imposition of a compulsory toll.

Speaking at a meeting of the International Maritime Organization Council in London on Thursday, Oman’s delegate Khamis bin Mohammed Al Shamakhi said the right of transit passage through straits used for international navigation was guaranteed under international law and did not support charging vessels simply for passing through Hormuz.

However, he said Oman saw value in exploring voluntary arrangements “relating to navigational support services that could further enhance maritime safety and security, protect the marine environment, reduce the risk of pollution and strengthen preparedness for maritime emergencies, including collisions and fires on board of ships and tankers".

Oman’s work draws on the cooperative mechanism used in the Straits of Malacca and Singapore. More than 120,000 vessels transit the waterway annually, according to a report submitted to the IMO Council.

The report said the mechanism had developed into a structured and inclusive platform for addressing emerging risks, technological developments and environmental priorities. It is supported by voluntary contributions, notably from Japan.

Gulf States Wary Of Iranian Control

Qatar has warned against any arrangement that would give Iran sovereignty over the Strait of Hormuz in a manner that conflicts with international maritime law.

“Giving the Iranians sovereignty over the strait in a way that contradicts international maritime law will be basically agreeing to be hostages to whatever radical element that wants to take over the strait at any time," Qatar foreign ministry spokesperson Majed al-Ansari said.

Iran is also under pressure from regional states to clarify its proposals and state whether the fees would, in effect, be compulsory.

US Seeks Public Assurance From Iran

The United States has demanded that Iran publicly declare the Strait of Hormuz open and assure ships using the vital corridor that they will no longer be attacked.

US officials blamed power struggles inside Tehran for the difficulty in reaching and adhering to an agreement.

“There are sections of the IRGC that say the US launched an unlawful attack on them in February, so why should they bother with the international law of the sea? Others want to cooperate. There is a division in Tehran," a diplomat told The Guardian.

Dispute Over Ceasefire Roadmap

The dispute over Hormuz is closely linked to the memorandum of understanding signed by Washington and Tehran last month as a roadmap for ceasefire negotiations.

Clause 5 committed Iran to making its best efforts to ensure the safe passage of commercial vessels through the strait without charge for 60 days. It also stated that commercial traffic would be “instated" within 30 days once technical and military obstacles had been removed.

The memorandum separately committed Iran to holding talks with Oman on a long-term plan for the strait.

The US has argued that the MoU did not mean vessels could pass only with Iran’s permission or only on routes specified by Tehran. The IRGC navy said on Thursday that it had fulfilled the commitments under its interpretation of the agreement. “We reiterate that foreigners have no role in this land or the Strait of Hormuz," it said.

Diplomats are now examining whether Tehran is insisting that all vessels use the northern route close to Iran to clear the shipping backlog, or whether it is requiring ships to obtain permission from Iran and its Persian Gulf Strait Authority before using the southern route.

Fresh Fighting Raises The Stakes

The negotiations are taking place against the backdrop of renewed US-Iran hostilities.

US President Donald Trump said on Friday that he regarded the interim ceasefire agreement as “over", although he added that Washington would continue talks aimed at reaching a permanent end to the war.

American forces struck more than 150 targets, mainly in southern Iran, this week in an attempt to weaken Tehran’s ability to harass shipping with drones, missiles and small boats.

Iran responded by attacking US bases in Kuwait and Bahrain.

One diplomat told The Guardian that the renewed fighting stemmed from two disputes: control of the strait during its reopening and the longer-term management of the waterway, including whether the Malacca model could be acceptable to Iran.

At the IMO meeting in London, an alliance of Gulf and European states pressed for a resolution condemning Iran for seeking to control the Strait of Hormuz through attacks on ships.

Russia and China did not support the motion. Russia said the resolution ignored the root causes of the crisis, while China described it as one-sided and beyond the IMO’s mandate.

About the Author

Karishma Jain

Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follo...Read More

News world Could The ‘Malacca Model’ Offer A Way Out Of The Hormuz Fee Deadlock? Europe Weighs Proposal

Read More