Iran announced on Saturday that a deal with Oman regarding control of the Strait of Hormuz is nearing finalization, though officials stressed it will not automatically reopen the vital waterway. The development follows months of conflict sparked by U.S. and Israeli strikes, as global energy markets monitor ongoing negotiations.
Five months of conflict in the Middle East have brought normal oil traffic through a critical maritime chokepoint to a near halt. Before the war carried a fifth of the world’s oil and gas shipments, the Strait of Hormuz now sits at the center of high-stakes diplomatic maneuvering between Tehran, Muscat, and Washington.
While U.S. officials anticipate a formal agreement shortly, Iranian authorities insist that any operational changes to the waterway depend on broader political concessions. The friction highlights the gap between American expectations for an immediate commercial reopening and Iran’s insistence on establishing a completely new transit model.
The Proposed Transit Framework and Omani Negotiations
Negotiators from Iran and Oman have finalized a draft agreement to reshape shipping through the narrow strait. According to regional officials and reports from Fars News, the framework proposes eliminating existing northern and southern shipping corridors in favor of a central route managed jointly and individually by the two bordering nations after a transition period.
Iranian Foreign Minister Abbas Araqchi stated that Tehran and Oman are “very close” to agreement on a temporary route while technical and permanent legal issues are sorted out. However, Iranian Deputy Foreign Minister Kazem Gharibabadi clarified that the arrangement falls short of restoring pre-war conditions.
Under the proposed terms, vessels utilizing the corridor would face service fees covering insurance, refueling, and environmental protection rather than paying a fixed percentage of their cargo’s value. The framework also incorporates a proposed ban on any Israel-related cargo.
Washington and Tehran Diverge on Conditions for Reopening
The diplomatic push comes against the backdrop of conflicting public statements from American and Iranian leaders. President Donald Trump told reporters that a deal could be announced as early as this week, noting that A lot of progress has been made.
A U.S. official added that once an agreement is announced to restore commercial shipping without impediments, Washington will lift its blockade of Iranian ports.
Yet Tehran maintains that the Oman agreement cannot in itself be interpreted as making the waterway safe for transit. Iranian Foreign Ministry spokesperson Esmail Baghaei stated that the agreement is in its final drafting stage and a joint statement will be issued if certain parties do not obstruct this process.
Iran’s Revolutionary Guards asserted that reopening the strait depends on Washington accepting conditions. Tehran has maintained that the easing of restrictions on the waterway depends on a change in U.S. conduct, the removal of threats to regional stability, and the lifting of economic sanctions targeting its oil sector. Meanwhile, regional shipping incidents persist; the Abu Dhabi National Oil Company reported that 15 of its vessels have been struck in unprovoked attacks since the conflict began, resulting in one death and 20 injuries.
Internal Hurdles and Economic Pressures
Any final arrangement requires approval from Iran’s Supreme Leader Ayatollah Mojtaba Khamenei, who is believed to have been wounded during the opening strikes of the war in February and has not appeared in public since the conflict began. Regional officials note that communication with the Supreme Leader takes time, creating a bottleneck for finalizing the text.
Vice President JD Vance acknowledged the difficulty of the diplomatic track, telling Fox News Channel that the effort is messy
and that it’s going to take some time,
describing Iranian negotiators as difficult counterparts. The disruption in the Gulf continues to ripple through international markets, where Brent crude traded around $80 per barrel following initial easing and subsequent slight increases.
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