Iran and Oman are finalizing a long-term agreement to jointly manage shipping through the Strait of Hormuz, a development that could diminish the United States' standing in the region. The prospective deal, reached after five months of regional conflict, paves the way for Iran to control inbound shipping traffic while outbound routes would be jointly managed by Iran and Oman.
This arrangement comes as insurers have withdrawn cover for vessels due to the threat of Iranian attacks, which had halted traffic through the strait. In February, prior to the conflict, the strait was open to all shipping and accounted for 20 percent of the world's oil and liquefied natural gas supplies. The new framework excludes tolls or service fees, but the prospect of altered access raises concerns for oil producers.
Iranian spokesman Esmaeil Baqaei confirmed that geographical coordinates for the route have been agreed upon. He stated that the joint statement from Iran and Oman is in the final review and drafting stage, provided no third parties obstruct the process. The talks have focused on establishing safe shipping lanes that uphold sovereign rights while considering the national security interests of both nations.
US Secretary of State Marco Rubio suggested that this agreement is separate from broader diplomatic efforts concerning Iran's nuclear program. The deal was reached after President Donald Trump reportedly delayed a significant US offensive at the request of Saudi Arabia, with Qatar mediating on behalf of the US.
The agreement also leaves Israel sidelined, as its air force had been anticipating participation in air strikes that were ultimately canceled. A senior Israeli official indicated that Trump had left Israel uncertain about the situation.
If the Iran-Oman agreement is finalized, it is anticipated that Iran and the US would resume peace talks to end the conflict, based on a Memorandum of Understanding agreed upon in June. The outcome leaves President Trump facing potential domestic and international criticism, with the US in a perceived weaker position than before the conflict began.