Navigation, jurisdiction, costs: Iran, Oman attempt to hammer out Hormuz deal

Iran and Oman have agreed to a temporary revenue-sharing deal for the Strait of Hormuz, a waterway that was closed earlier this week. Muscat, the capital of Oman, expressed hope that the deal would be formalized soon. Tehran, however, warned that the strait would remain closed if the United States does not accept the proposal's terms, stating that the U.S. is "obstructing this process." Iran's Islamic Revolutionary Guard Corps spokesperson Hossein Mohebbi reiterated that the U.S. is delaying progress.

The agreement goes further than a joint statement issued Tuesday, which proposed a "phased framework" for resuming shipping and clearing sea mines in the strait. The initial statement did not mention the possibility of charging tolls, a demand made by Iran. Global oil prices dropped on Wednesday, with Brent crude and West Texas Intermediate falling over $2 per barrel from their Tuesday highs.

U.S. President Donald Trump, however, dismissed Iran's claims, stating that the strait is already open and that it is "functioning" despite occasional threats from drones or rockets. Only 14 vessels were in the Strait of Hormuz at the time of writing on Wednesday, according to TankerMap, which tracks oil and natural gas tanker traffic. Before the war began, an average of 130 ships passed through the waterway daily, transporting roughly one-fifth of the world's oil and natural gas supplies.

The Iran-Oman proposal comes after the Trump administration unveiled Operation Economic Outcast, threatening secondary sanctions on countries that continue to do business with Tehran. This response has been met with resistance from Iran and its top trading partner, China, which has vowed to resist U.S. economic warfare.