Iran-Oman Hormuz plan said to forbid U.S. passage; Iran attacks ’hostile’ targets

Iranian and Omani officials have reportedly signed a framework agreement aimed at managing the strategic Strait of Hormuz, which could prohibit passage of U.S., Israeli, and "hostile" vessels until compensation is paid. The news has raised concerns among market participants who have been eagerly awaiting any progress on reopening the critical waterway, which previously accounted for a fifth of the world's oil and gas transit before the recent Middle East conflict.

According to the initial text of the plan, vessels that violate Iran's protocols could face fines equivalent to up to 20 percent of their cargo value. Iran's Fars News reported that the plan would dictate that entry into the strait would occur via the northern corridor near the Iranian coast, while exit would be through the southern corridor near the Oman coast.

If a specified deadline passes without an agreement, transit would shift to a middle corridor, with Iran managing entry and jointly managing exit with Oman. The framework comes after a series of threats, attacks, and concessions between Iran and the U.S. in the wake of their ongoing conflict. President Donald Trump has been involved in the negotiations, claiming that efforts are "doing fine," though he added that the situation remains open and that the U.S. retains control of the strait.

Iran has publicly denied engaging in negotiations with Washington, stating that it is communicating with mediators in Oman.