Pakistan, July 29 -- Iran has proposed a temporary shipping arrangement for the Strait of Hormuz while Oman continues diplomatic efforts to broker a broader agreement backed by several Gulf states to restore stability in one of the world's busiest energy trade routes.

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Iranian Deputy Foreign Minister Kazem Gharibabadi said Tehran has suggested a temporary framework under which vessels traveling in one direction would pass through Iranian territorial waters, while part of the opposite shipping lane would also be routed through Iranian waters.

Speaking to Iranian state television, Gharibabadi said Iran rejected an earlier Omani proposal that would have divided shipping lanes equally be...