The UK and other European countries are reportedly considering a proposal to introduce non-compulsory navigation charges in the Strait of Hormuz as diplomatic efforts involving Qatar, Iran and Oman continue to explore ways to reopen the strategic waterway.
Several UK Labour government ministers argued that payments for specific navigational services were already permitted in several international waterways, including the Strait of Malacca and the English Channel, The Guardian reported.
However, the UK's deputy prime minister, David Lammy , warned that introducing mandatory tolls would be "disastrous".
The proposed framework, which draws on principles used in the Strait of Malacca, is reportedly being developed by Oman in coordination with British legal experts.
Muscat has reportedly offered to send legal specialists to Tehran to explain the proposal in detail.
European and Gulf officials meet
The developments come ahead of a meeting of European Union foreign ministers with Gulf counterparts in Brussels on Monday to discuss the escalating situation.
The gathering at the Council of the European Union will mark the first meeting between European and Gulf officials since hostilities resumed.
Kaja Kallas , the EU's foreign affairs and security policy chief, will chair the EU-GCC High Level Forum on Regional Security and Cooperation, which will be attended by Gulf ministers.
The reported proposals are also being considered amid vocal opposition to compulsory tolls, with Oman controlling much of the navigable waters in the Strait of Hormuz and rejecting the introduction of mandatory charges.
Other Gulf states have also criticised any arrangements that could undermine Iranian sovereignty claims over the waterway. Qatar has warned against any agreement 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's foreign ministry spokesperson Majed al-Ansari said.
The United States has also demanded that Iran publicly confirm the Strait of Hormuz is open and provide assurances to vessels using the vital maritime corridor that they will not be targeted.
The dispute over Hormuz is closely tied to a memorandum of understanding signed by Washington and Tehran last month, which outlined a roadmap towards ceasefire negotiations.
However, talks are taking place against the backdrop of renewed US-Iran tensions.
Trump says agreement is 'over'
US President Donald Trump said on Friday that he considered the interim ceasefire agreement with Iran to be “over”, while adding that Washington would continue negotiations aimed at securing a permanent end to the conflict.
Qatari officials have since participated in talks between Iran and Oman over the partial reopening of the Strait of Hormuz, Axios reported, citing a diplomat familiar with the matter.
During discussions in Muscat, officials reportedly considered a proposal that would see the full reopening of the "median lane" of the Strait of Hormuz, an area located in international waters, to allow unrestricted maritime movement.
Oman proposed that the southern route, located in Omani waters, and the northern route, located in Iranian waters, should both operate fully.
Under the Omani proposal, the southern route would reopen without requiring permits, restoring the arrangement that existed before the war.
However, Iranian officials were reportedly unable to approve the proposal during the meeting and took it back to Tehran for further internal discussions.
According to ABC News on Saturday, citing a US official, American negotiators were not present during the Oman talks.
"US technical teams will not be present in Oman but will be in touch with the Omanis and Qataris as developments occur," the official said.
The discussions come after Iran said on Sunday that it had closed the Strait of Hormuz following an incident in which a vessel travelling along an unauthorised route was struck. Tehran warned that any retaliation over the incident would receive a "severe response".
Oman has been mediating efforts to end a conflict that has destabilised the Gulf and pushed up global energy prices since the United States and Israel launched air strikes on Iran on 28 February.
Before the war, around one-fifth of the world's oil supply passed through the Strait of Hormuz. Iran's effective blockade of the waterway has sent energy prices higher, contributing to renewed inflationary pressures worldwide.