What is the Strait of Hormuz deal being negotiated between Iran and Oman?

Negotiations are underway between Iran and Oman to formalize shipping administration in the Strait of Hormuz. Iranian parliament spokesman Hassan Ghashghavi confirmed a general framework had been agreed upon, though final details require higher-level approval. The deal aims to divide traffic management between Iran and Oman, with Iran overseeing vessels entering the Arabian Gulf and Oman managing those exiting.

The key sticking point is Iran's proposal to charge approximately 5% of cargo value, a demand the United States rejects. Currently, ships can transit the strait without fees under a 60-day window established by a US-Iran Memorandum of Understanding signed on June 17. The proposed system would replace the current arrangement overseen by the International Maritime Organisation, introducing designated routes and corridors.

Iran and Oman initiated talks on future navigation arrangements in June, with both countries pledging to work together on the "future administration of navigation" and associated costs. While the framework has been agreed upon, discussions continue on the extent of authority and whether ships would incur fees for services. The US-Iran Memorandum of Understanding stipulated a 60-day period for Iran to consult Oman and Gulf states on maritime arrangements, but no final agreement on long-term rules has been reached.