(AL-JAZEERA) Iran and Oman have exchanged proposals regarding the future management of the Strait of Hormuz, as points of contention continue to exist between the two nations whose territorial waters border the strategic waterway.

Oman presented a proposal to Iran ⁠for ⁠a joint regional mechanism to manage the Strait of Hormuz with “voluntary fees”, Reuters reported on Tuesday. Under the Omani proposal, which reportedly has regional backing, Iran would not exercise sole control ⁠of the strait, an unnamed Gulf source and Western diplomat ⁠told the news agency.

Oman’s proposal is reportedly based on the Strait of Malacca, which connects the Indian and Pacific Oceans. There, Indonesia, Malaysia and Singapore ask ships that use the strait to voluntarily contribute to fund navigation, environmental protection, and rescue operations.