Iran, Oman strike Hormuz revenue deal; Tehran warns US must meet demands to reopen waterway

Iran and Oman have reached an agreement on revenue sharing for the Strait of Hormuz, but Tehran has threatened to keep the vital waterway closed unless the United States meets its demands. Diplomatic efforts to resolve the ongoing conflict between Iran and the US have been stalemated, with control of the strategic waterway being a significant point of contention.

Iran's IRGC spokesperson, Hossein Mohebi, announced that the two countries had held talks for about a month and agreed on their respective shares of the strait's waters and revenues. The deal goes beyond a joint statement issued by the Iranian and Omani foreign ministries on Tuesday, which mentioned an "interim framework" for resuming ship transit but did not outline a final agreement or revenue-sharing arrangements.

However, Iran claims that the progress with Oman is being delayed due to US obstruction, and the waterway will remain closed unless Washington accepts Iran's conditions and returns to a previous agreement. Iran has linked the reopening of the waterway to a memorandum of understanding signed in June, demanding that the US lift sanctions, end its naval blockade of Iranian ports, unfreeze Iranian assets held abroad, and return to the earlier agreement governing the conflict and navigation through Hormuz.

The US has not indicated a willingness to accept these demands. Additionally, Iran insists that ships pay for passage through the Strait of Hormuz, a demand that Washington has rejected. The Strait of Hormuz is a critical energy chokepoint, carrying approximately one-fifth of global oil and liquefied natural gas shipments before the conflict.

Its closure could have significant consequences for energy supplies, shipping, and global oil prices.