Iran and Oman edge toward interim deal on Strait of Hormuz shipping

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Iran and Oman edge toward interim deal on Strait of Hormuz shipping
PrimeXBT Editorial Team
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Iran and Oman have edged toward an interim deal on managing shipping through the Strait of Hormuz, the first sign of diplomatic progress in weeks. The framework covers a temporary shipping corridor and a mine-clearing project, but Tehran says a full reopening still depends on Washington lifting its naval blockade and reinstating Iran's oil-export waiver.

Iran and Oman have edged toward an interim agreement on managing shipping through the Strait of Hormuz, the first hint of diplomatic movement in weeks as mediators try to defuse the standoff over the strategic waterway. In a joint statement, Tehran and Muscat said they had discussed a framework for a temporary corridor for ships and a project to demine the strait.

Oman signals a corridor announcement is close

Omani foreign minister Sayyid Badr Albusaidi, who met his Iranian counterparts in Tehran on Tuesday, said technical negotiations would continue toward a permanent navigational corridor, traffic management and information-sharing arrangements. He added he was hopeful the two sides would soon announce a temporary corridor and practical steps to restore safe navigation.

Iranian officials, however, have repeatedly said a deal with Oman would not mean an immediate return to free-flowing traffic through the waterway. Tehran insists Washington must first lift its naval blockade on Iranian ports and reinstate the waiver that lets Iran export oil.

Talks resumed after the June accord collapsed

Iran and Oman have held talks on a provisional shipping arrangement since a June memorandum of understanding between Washington and Tehran collapsed last month. Under that deal, the US and Iran had agreed to extend an April ceasefire and gradually restore prewar shipping levels through the strait without fees. It began unraveling roughly two weeks after signing, when Iran said US-directed vessels used an improperly authorized southern route and began firing on ships.

That triggered tit-for-tat strikes between the US and Iran, prompting Trump to reimpose the naval blockade and revoke the oil waiver, though there have been no significant attacks since strikes paused in late July. On August 5, Iran said it had agreed with Oman on the geographic coordinates of a temporary corridor and was in the final stages of drafting an agreement, under which ships would enter through Iranian waters and exit mostly through Omani waters. That process then stalled as Oman worried it was being pressured into ceding sovereignty over its waters.

Washington raises the pressure

The latest diplomatic movement comes a day after Washington announced it was launching a campaign to expand secondary sanctions on Iran, part of Trump's effort to isolate the Islamic republic further, though no timeline was set for trading partners to comply. Pakistan's military chief, Asim Munir, who has also been involved in mediation, was in Tehran a day before Albusaidi's visit; Iran's Tasnim news agency said Tehran's conditions on the strait were conveyed to Washington through Islamabad.

Gregory Brew, a senior analyst at Eurasia Group, said the joint statement points to regional pressure to clarify the strait's status, even as Trump signals he is comfortable with a long standoff. According to Eurasia Group's Brew, what the US is touting as success in shuttling oil through the strait is "a band-aid, not a permanent solution." Analysts more broadly caution that Trump's stance has hardened and he may no longer be willing to return to the June memorandum of understanding. Brew separately said he believes Trump has decided he no longer likes the deal reached in June, noting Trump has a long history of going back on prior agreements. Last week, Trump threatened to bomb Oman if it interfered with a deal with Iran, Fox News reported.

Source: Financial Times

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