Iran and Oman Continue Talks on Agreement Over Strait of Hormuz

Iran and Oman are still negotiating the details of a proposed agreement concerning the Strait of Hormuz, a senior Iranian source said on Wednesday, despite earlier claims from Iran’s Revolutionary Guards that the two countries had reached an understanding over the use of the strategic waterway and the sharing of related revenues. The clarification followed comments by Islamic Revolutionary Guard Corps (IRGC) spokesperson Hossein Mohebbi, who said Iran and Oman had reached acceptable arrangements regarding their respective shares of the waters and revenues associated with the Strait. However, the senior Iranian source stressed that a final agreement had not yet been concluded and that discussions were continuing.

The Strait of Hormuz has become a major point of tension amid the wider conflict involving Iran and the United States. Tehran has maintained that the waterway will not be reopened unless Washington meets conditions linked to an interim ceasefire arrangement. Iran's demands include an end to the US blockade of its ports, compensation and the removal of sanctions. Iran and Oman have been holding negotiations for several weeks over the management of shipping through the strait. Before the conflict began in February, the waterway carried around one-fifth of the world's oil and liquefied natural gas shipments, making any prolonged disruption a major concern for global energy markets.

Most commercial shipping through the route has been severely affected since the fighting began. Separate restrictions imposed by Iran and the United States have complicated efforts to restore normal maritime traffic and have contributed to volatility in global energy prices. Following talks with Iran on Tuesday, Omani Foreign Minister Badr Albusaidi said he remained hopeful that the two sides would soon be able to announce a temporary corridor and practical measures to allow safer navigation through the Strait of Hormuz.

The IRGC, however, accused Washington of interfering in the negotiations with Oman. Mohebbi said Iran would be prepared to reopen the waterway under the terms of an agreement if the United States stopped obstructing the process and accepted Tehran's conditions. He warned that the strait would remain closed if those demands were rejected. The situation has also raised tensions with Oman. US President Donald Trump reportedly warned Muscat against cooperating with Iran, saying earlier this month that Washington could respond militarily if Oman stood in the way.

Shipping tensions continue in the region. Iran recently placed 45 vessels on a blacklist, apparently targeting ships involved in ship-to-ship transfers that Gulf energy producers allegedly use to bypass Iranian restrictions. Some companies are reportedly considering avoiding vessels included on the list. Washington has also threatened additional economic pressure on countries continuing to conduct business with Iran, although the United States has indicated that penalties would not be introduced immediately. Tehran has criticised the measures and accused Washington of unlawfully attempting to isolate the Iranian economy.

Despite a reduction in direct hostilities between Iran and the United States in recent weeks, the security situation around the Strait of Hormuz remains fragile. Attacks involving commercial vessels and the lack of a broader peace agreement continue to make passage through the waterway risky. Oil prices have recently fallen amid signs that diplomatic efforts could lead to a negotiated settlement to the conflict. At the same time, reports indicate that the United States is not currently planning additional strikes against Iran and may instead focus on economic and diplomatic pressure.

The future of the Strait of Hormuz therefore remains closely connected to the wider Iran-US dispute. While Iran and Oman appear to have made progress in their discussions, the absence of a final agreement means uncertainty over shipping through one of the world's most important energy routes is likely to continue.

Disclaimer: This image is taken from Bloomberg.