Iran and Oman have reached a mutual understanding on the geographic coordinates for a shipping route through the strategic Strait of Hormuz, with a joint announcement in its final stages, provided certain third parties do not interfere, according to Iran's foreign ministry spokesperson Esmail Baghaei on Wednesday. Baghaei emphasized that any such agreement between Tehran and Muscat would not, by itself, guarantee security in the vital waterway.
Deal would give Tehran control over entering vessels
The proposed deal between Iran and Oman would grant Tehran control over ships entering the Gulf through the Strait of Hormuz, according to a senior Iranian source and two regional officials who spoke to Reuters on Wednesday. This represents one of the most significant concessions to Iran in recent months, potentially reshaping the balance of power in the region's key maritime chokepoint.
The understanding appears to be a stepping stone toward a broader ceasefire agreement with the United States that would reopen the Strait of Hormuz for marine traffic and lift a US blockade on Iranian ports, which has caused significant upheaval in global energy markets. The development comes as former President Donald Trump has claimed that an announcement on a separate US-Iran peace deal could come as soon as Wednesday.
Sources push back on imminent deal claims
However, the sources pushed back against assertions by Trump that a deal reopening the strait was imminent, stating that important details still needed to be agreed upon. The complexity of the negotiations suggests that a final agreement may take longer than some political figures have suggested.
If endorsed by the United States, the Iran-Oman deal would mark a significant concession by handing partial control over the waterway to Tehran. The Strait of Hormuz was considered a neutral waterway before the US and Israel launched joint strikes in February, which prompted Iran to attack shipping in the region in retaliation.
Negotiations described as 'professional' and 'moving forward'
Baghaei described the negotiations between Tehran and Muscat as “professional” and “moving forward,” saying that “the two sides had reached a mutual understanding on the geographical parameters of the route under discussion.” This language suggests that while progress is being made, the final details are still being worked out.
Baghaei added that if some third parties do not obstruct the process, the joint statement between the two countries, containing the main considerations and key points of understanding, was in the final stages of review and drafting. This indicates that external actors could still derail the agreement.
Global energy markets watch closely
The reopening of the Strait of Hormuz would have immediate implications for global energy markets, as approximately 20% of the world's oil passes through the strait daily. The blockade and subsequent attacks on shipping have led to increased insurance rates and rerouting of tankers, driving up energy prices worldwide.
Analysts note that while the Iran-Oman understanding is a positive step, the broader US-Iran peace deal remains uncertain. The involvement of third parties, including the US and Israel, will be crucial in determining whether the agreement can be fully implemented and whether the strait can return to its former status as a neutral waterway open to all commercial traffic.
