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

A tentative agreement between Iran and Oman is reportedly paving the way for controlled shipping through the Strait of Hormuz, amid ongoing peace talks with the United States. Iranian parliament spokesman Hassan Ghashghavi confirmed a broad framework had been reached with Muscat, though final approval remains pending at higher levels.

The proposed system would divide traffic management duties, with Iran coordinating inbound vessels to the Arabian Gulf and Oman overseeing outbound traffic. The critical sticking point is whether ships should pay fees, with Iran reportedly demanding charges around 5% of cargo value, a demand the US has declined. Currently, vessels can transit the strait without paying fees, under a 60-day window outlined in a June 17 US-Iran Memorandum of Understanding.

The deal aims to officially govern shipping through the strategic waterway, dividing traffic between Iran and Oman and establishing designated routes. Negotiations are still centered on the extent of each country's authority and any potential fees. Iran and Oman established a joint working group in June to negotiate future navigation arrangements, with both nations pledging to collaborate on the "future administration of navigation" and associated services.

The US-Iran agreement established a 60-day negotiation period and required Iran to consult Oman and Gulf states on maritime matters. Iran and Oman signed their agreement on June 24, providing a framework for implementing that commitment. However, the Strait of Hormuz remains largely closed, and no final agreement has been reached on long-term rules for shipping through the waterway.