India turns to US for LPG, LNG as Strait of Hormuz crisis hits Gulf supplies

Iran and Oman have reached an agreement regarding their respective shares of the Strait of Hormuz and its revenues, according to Iran's Revolutionary Guards. However, the waterway will not reopen until the United States accepts their conditions, the Guards stated on Wednesday. A senior Iranian source later clarified to Reuters that the agreement between Iran and Oman over the Strait has not yet been finalized, and both countries are still working on the details.

Iran and Oman have been holding intermittent talks for weeks about controlling traffic through the strait, which previously facilitated one-fifth of global oil and liquefied natural gas shipments before the February war began. Since then, most shipping has been halted, causing global energy prices to surge. Tehran and Washington have been attempting to assert control over the channel by imposing separate blockades.

Iranian state media quoted the Revolutionary Guard's spokesman, Hossein Mohebbi, as saying the negotiations with Oman have yielded results that are acceptable to both sides. The IRGC had accused the United States of obstructing the talks, which it claims has caused the agreement to be delayed. Mohebbi stated that if the U.S. stops obstructing and returns to the agreement, the Strait of Hormuz could reopen under the terms reached.

However, the Guards emphasized that if the United States does not accept their conditions, the strait will remain closed.

While active hostilities between the U.S. and Iran have largely lessened in recent weeks, diplomatic efforts to finalize a peace deal have stalled, and ongoing attacks on ships have made passage through the Strait of Hormuz perilous. Iran announced a blacklist of 45 ships on Sunday as an attempt to stop ship-to-ship transfers used by Gulf energy producers to circumvent the Iranian blockade. Some companies plan to cease using vessels added to the list, sources reported.

In an attempt to intensify pressure on Iran's economy, the United States announced earlier this week that it would penalize countries that continue to engage in business with Iran, though the sanctions would not take effect immediately. The U.S. sanctions did not include Chinese financial institutions suspected of facilitating oil exports from Iran that were previously blocked by the U.S. blockade.

Iran denounced the U.S. effort to isolate its economy as an "act of gross lawlessness" and expressed confidence that many countries would not join the pressure campaign. Oil prices dropped for the third consecutive day, falling more than $2 a barrel to a two-week low following indications of renewed efforts to mediate an end to the war that began on February 28 with U.S. and Israeli strikes on Iran.