Strait of Hormuz Latest: Iran Nears Oman Shipping Deal but Says Waterway Won’t Automatically Reopen

Iran is nearing an agreement with Oman on a shipping route through the Strait of Hormuz, but Tehran said Saturday that any deal with Muscat would not by itself reopen the strategic waterway, keeping the focus on wider demands directed at Washington.

Iranian Foreign Minister Abbas Araghchi said Iran and Oman were “very close” to an agreement, while Iranian officials have stressed that the reopening of the strait depends on conditions beyond the bilateral arrangement. The Iran-Oman mechanism is seen by Tehran as a matter not of a reopening, but as part of a larger debate with the United States, the comments suggest.

The Persian Gulf is connected with the Gulf of Oman and the Arabian Sea by the Strait of Hormuz, one of the world’s most critical energy choke points.

According to data from the U.S. Energy Information Administration, oil passed through the strait at an average rate of approximately 20.9 million barrels per day in the first half of 2025, which is equivalent to about 1/4 of global maritime oil trade. The waterway was also used for over 20% of the global LNG trade during that time period.

Iran and Oman Near Shipping Agreement

Iranian Foreign Ministry spokesman Esmaeil Baghaei said Wednesday that Tehran and Muscat had agreed on the geographical coordinates of a proposed shipping route through the strait.

Baghaei said a joint statement was in its final stages of review and drafting, provided that third parties did not obstruct the process. Reuters reported that the proposed arrangement would give Iran a role in controlling vessels entering the Persian Gulf, while Oman would oversee traffic in the opposite direction.

The talks build on earlier efforts by Iran and Oman to establish a framework for navigation through the strait.

Oman and Iran expressed in their statement on 23 June their adherence to international law regarding safe passage through the Strait of Hormuz, underscoring their sovereignty and their sovereign rights through their waters. The two countries agreed to continue discussions through a joint working group on the future administration of navigation, services and associated costs.

Oman also worked with the International Maritime Organization in June to make a temporary maritime corridor available to vessels seeking to transit the strait. The Omani Foreign Ministry said vessels using the corridor were required to coordinate with the IMO.

Tehran Says Oman Deal is Not Enough

The central issue for Washington and Tehran is what would happen after an Iran-Oman arrangement is finalized.

Iranian lawmaker Behnam Saeedi, secretary of the Iranian Parliament’s National Security and Foreign Policy Commission, said the Oman negotiations should not be interpreted as negotiations to reopen the strait.

Saeedi said a full reopening would depend on broader developments, including an end to U.S. threats and the naval blockade of Iranian ports, as well as a ceasefire and the withdrawal of U.S. forces from the region, according to U.S. News & World Report.

The position is consistent with Iran’s earlier public statements about the waterway. Iranian authorities have repeatedly argued that navigation arrangements must take account of the rights of Iran and Oman as the coastal states of the strait.

Oman, meanwhile, has maintained a neutral position and said it is working with all parties to restore freedom of navigation in accordance with international law.

The gap between the two positions remains significant. Tehran is seeking an arrangement that recognizes its role in managing navigation through its territorial waters, while Washington has opposed restrictions that would require commercial vessels to obtain Iranian approval or pay Iranian transit fees.

Washington Wants Unrestricted Commercial Navigation

The Trump administration has publicly maintained that the United States has control of the waterway and has sought unrestricted commercial navigation.

In a July 28 White House statement, President Donald Trump said the United States had a naval blockade in place and that only ships permitted by U.S. forces were being allowed through. Trump also said Iran could still disrupt shipping by laying mines.

The administration has also opposed any arrangement that would allow Iran or Oman to impose tolls on commercial shipping.

The position creates a major obstacle to an agreement if Tehran insists that navigation through its territorial waters must be managed jointly with Oman and under rules that recognize Iranian authority.

The June framework between Iran and Oman likewise emphasized that any arrangements concerning the Strait of Hormuz must respect the sovereignty and sovereign rights of the two coastal states.

Shipping Remains Severely Disrupted

Despite diplomatic efforts, the commercial traffic through the strait remains far below normal levels.

U.S. Energy Information Administration data show that oil flows through Hormuz fell to an average of 14.6 million barrels per day in the first quarter of 2026, compared with more than 20 million barrels per day in each quarter of 2025. LNG flows also fell to 7.3 billion cubic feet per day from 10.1 billion cubic feet per day in the fourth quarter of 2025.

Shipping disruptions have also affected global gas markets. The EIA previously estimated that the closure affected more than 10 billion cubic feet per day of global LNG supplies, representing about one-fifth of global LNG trade, with Qatar accounting for most of the affected volumes.

The disruption matters particularly for Asian energy importers. EIA data show that China, India, Japan and South Korea were the largest combined destinations for crude and condensate moving through Hormuz, accounting for about 74% of those flows in the first half of 2025.

New Attack Raises Pressure

The diplomatic efforts are unfolding alongside continuing maritime tensions.

The United Arab Emirates said Saturday that Iran had attacked a vessel affiliated with state-owned oil company ADNOC with a missile while it was transiting the Strait of Hormuz. The UAE said there were no injuries in the latest incident. Iranian authorities had not immediately commented, according to Reuters.

ADNOC said Friday that its vessels had been targeted in 15 missile and drone attacks since the conflict began, resulting in one crew death and 20 injuries.

The latest incident adds pressure to negotiations over a navigation arrangement, as any agreement would have to address both the political dispute over control of the waterway and the immediate security risks facing commercial shipping.

Why Washington’s Next Move Matters

Iran’s latest position leaves the Oman negotiations short of a full reopening agreement.

The proposed route could provide a mechanism for limited commercial navigation, but Tehran has made clear that it does not view the route agreement as sufficient to resolve its dispute with Washington.

The distinction is important because the United States and Iran are approaching the negotiations from different starting points. Washington is seeking unrestricted commercial navigation, while Tehran is demanding broader changes to the U.S. military posture and recognition of Iranian and Omani authority over their territorial waters.

For global energy markets, the outcome could determine whether traffic through one of the world’s most important oil and LNG chokepoints returns toward normal levels or remains restricted.

The immediate question is therefore not simply whether Iran and Oman can finalize their shipping arrangement, but whether Washington is prepared to accept the conditions Tehran says are necessary for a full reopening.