Iran-Oman Strait of Hormuz Deal Near, But Waterway May Remain Closed

Iran has indicated that negotiations with Oman over arrangements for shipping through the Strait of Hormuz are nearing an agreement, but Tehran says a deal with Oman alone would not be enough to fully reopen the strategically important waterway.

The development comes as tensions surrounding the Strait of Hormuz remain high and disruptions to shipping continue to affect global energy markets.

Iranian Foreign Minister Abbas Araqchi said Tehran and Muscat were close to reaching an understanding on a new shipping route through the strait. However, he stressed that reopening the waterway would depend on additional conditions, including compensation from the United States.

Iran Sets Conditions for Reopening Strait of Hormuz

Iran's position suggests that the proposed arrangement with Oman is only one part of a much broader agreement.

Mohammad Baqer Zolqadr, secretary of Iran's top national security body, outlined several demands that Tehran wants addressed. These reportedly include an end to US threats against Iran, a halt to what Tehran describes as aggression against Iran and its regional allies, the removal of sanctions and blockade measures, and the release of Iranian assets.

Iran's Revolutionary Guards also indicated that the reopening of the Strait of Hormuz would ultimately depend on Washington accepting Tehran's conditions.

A Guards spokesperson said the waterway would be reopened once Iran's demands were accepted by the United States.

Oman Calls Iran Talks Positive

Oman has described its discussions with Iran over shipping arrangements as positive and constructive.

The Omani government also expressed concern over repeated attacks involving vessels travelling through the Strait of Hormuz. Muscat urged all sides to avoid actions that could undermine the ongoing negotiations.

According to Araqchi, Iran no longer considers the previous shipping traffic arrangement acceptable. Tehran and Muscat are therefore discussing a temporary route while technical and legal issues related to a permanent arrangement are addressed.

UAE Reports Missile Attack on Ship

While diplomatic efforts continue, tensions at sea remain a major concern.

The United Arab Emirates said an oil carrier linked to its state-owned energy company was struck by a missile while passing through the Strait of Hormuz. No injuries were reported.

The UK Maritime Trade Operations organisation also reported that a vessel caught fire after being hit by an unidentified projectile. The fire was later brought under control, with no reported environmental damage.

Iranian authorities had not immediately issued a response to the UAE's allegation.

Why the Strait of Hormuz Matters

The Strait of Hormuz is one of the world's most important energy shipping routes. A significant share of global oil and gas shipments passes through the narrow waterway, making any prolonged disruption a major concern for international energy markets.

The current tensions have already affected commercial shipping and contributed to higher energy prices. Restrictions on tanker movements and reported attacks on vessels have increased uncertainty for energy companies and traders.

Any agreement that restores normal commercial shipping through the strait could therefore have a significant impact on global oil supplies and prices.

US Says Deal Could Restore Commercial Shipping

US officials have recently suggested that an agreement involving Iran and Oman could help restore normal shipping through the Strait of Hormuz.

A US official said Washington would be prepared to lift its blockade of Iranian ports once an agreement guaranteeing unrestricted commercial shipping was announced and Iran fulfilled its commitments.

However, Iran's latest statements indicate that Tehran expects broader concessions before the waterway is fully reopened.

This difference in positions means that although negotiations appear to be progressing, a final agreement remains uncertain.

Proposed Deal Could Give Iran Greater Control

Earlier reports suggested that a proposed arrangement could give Iran some authority over vessels entering the Gulf through the Strait of Hormuz.

Such a provision would represent a significant concession to Tehran, but US officials have previously rejected the idea of Iran controlling access to the world's major energy shipping route.

It remains unclear whether the terms of the proposed arrangement have changed during the latest negotiations.

Strait of Hormuz Crisis Could Affect Global Markets

The ongoing uncertainty has already disrupted international shipping and contributed to rising energy costs.

Iran has also reportedly imposed charges on some oil tankers and taken action against vessels attempting to cross the strait without Tehran's approval.

For now, diplomatic negotiations between Iran and Oman appear to be moving forward, but the key question remains whether Washington and Tehran can agree on the wider conditions demanded by Iran.

The proposed Iran-Oman deal may be close, but reopening the Strait of Hormuz could require a much broader agreement involving the United States.