Iran and Oman Reach Temporary Shipping Lane Agreement Through Strait of Hormuz

Iran's Deputy Foreign Minister Kazem Gharibabadi announced on Aug 26 that Iran and Oman have agreed on a temporary shipping lane for vessels through the Strait of Hormuz. However, he warned that the strategic waterway will not be fully opened until the US fulfills commitments made under the temporary peace agreement signed in June, which has since expired.

The Strait of Hormuz, which carries over 20% of global crude oil and liquefied natural gas from Gulf producers during peacetime, has become a major point of contention between Washington and Tehran. The war launched by the US and Israel against Iran, beginning on Feb 28 with airstrikes on Tehran, has left the strait nearly closed to maritime traffic, pushing global energy markets into crisis.

Since the US bombed parts of Iran in July following disagreements over the strait, Iran has refused direct dialogue with Washington. Tehran insists it will only communicate directly with Oman about the future of the waterway, which passes through the territorial waters of both countries.

Context of the Hormuz Crisis

Before the war, roughly 130 vessels passed through the Strait of Hormuz daily. Global benchmark Brent crude was around $66 a barrel before hostilities erupted. Iran closed the strait in early March, allowing only ships deemed "friendly" to pass.

By April, Iran's Islamic Revolutionary Guard Corps (IRGC) issued a route map for permitted vessels, pushing traffic closer to Iran's coast and designating a large portion of Oman's territorial waters as a "restricted area." The US has accused Iran of laying mines in the strait, though Tehran has not confirmed this.

The US subsequently imposed a naval blockade on Iranian ports in and around the strait to curb the country's fuel exports. The war has repeatedly pushed crude prices above $100 a barrel, at times nearing $120 in March.

On June 17, the US and Iran signed a memorandum of understanding on a ceasefire to facilitate peace talks lasting up to 60 days. Under the deal, Iran agreed to keep the strait open for all passage without payment. However, ambiguous wording left both sides disagreeing over which shipping lanes vessels should use, creating two disputed routes — a southern one endorsed by Oman with US backing and a northern one approved by Iran.

On Aug 26, a tanker was disabled by an unknown object near Ash Shishah, Oman, close to the strait's entrance, according to the UK Maritime Trade Operations (UKMTO).

Details of the New Route

Speaking on state television, Gharibabadi said Iran and Oman agreed that the entry point for the new route would begin within Iranian territorial waters "and part of the exit will also pass through our territorial waters." The corridor would be 7 miles (about 11.3 km) wide.

However, key details remain unresolved, including exact coordinates and when vessels can begin safe passage. Operational procedures — such as which ships or flags are banned, or whether Iran and Oman will levy transit fees — have not been disclosed.

Strait of Hormuz Not Yet Reopened

Gharibabadi stressed that Iran has only agreed on a shipping route with Oman and does not consider the strait open despite the deal. "The shipping route agreed with Oman is temporary," he said.

The Iranian deputy foreign minister asserted that the US must fulfill commitments under the June memorandum, including easing sanctions and returning Iran's frozen assets, if it wants to resume peace talks. He called on countries to resist US pressure aimed at economically squeezing Iran.

US President Donald Trump last week announced the "most severe" economic campaign yet against Iran and threatened sanctions on any nation doing business with Tehran. US Treasury Secretary Scott Bessent on Aug 25 unveiled a new round of sanctions targeting 60 entities worldwide accused of supporting Iran's oil sales.

"We call on countries not to submit to US pressure regarding the sanctions Washington wants to impose," Gharibabadi said, adding that the US is "mistaken about its ability to enforce sanctions against our neighbors."

Oman's Response

Gharibabadi's statement came after negotiations with Omani negotiators in Tehran to finalize details of the phased framework for managing the strait's future. Iran and Oman have spent weeks discussing traffic control through the strategic waterway.

The same day, Iranian Foreign Minister Abbas Araghchi met his Omani counterpart Badr Albusaidi in Tehran to discuss the temporary navigation corridor as well as a mine-clearing project, according to a joint statement. Albusaidi expressed hope the two countries would "soon announce" the corridor and said technical talks would be planned to develop a long-term agreement, including information-sharing mechanisms and navigation and security services.

US Reaction

The US has not formally responded to the Iran-Oman agreement. Last week, President Trump threatened to bomb Oman if it "stands in the way" of the US-Iran peace process. He made a similar threat in May, declaring that "no one controls" the strait because it is international waters.

Analysts suggest the bilateral Iran-Oman deal on the waterway runs counter to Washington's core demand that Iran relinquish control of the strait as a condition for ending the war. The agreement could bolster the legitimacy of Iran's role in managing the route.

"A mediated solution without US involvement, even allowing Oman and Iran to manage traffic through Hormuz — located entirely within their territorial waters — would show how powerless the US is," Laleh Khalili, a professor of Gulf studies at the UK's University of Exeter, told Al Jazeera last week.

The US and Iran also remain deeply divided over whether Tehran may charge vessels for using the strait. Under international law, tolls for passage through natural waterways like Hormuz are prohibited, but fees for services such as insurance, environmental protection, and anchorage are permissible.

The Mine Issue

The US has long accused Iran of sowing mines in the Strait of Hormuz. President Trump claimed US forces destroyed "all" 28 Iranian mine-laying vessels in the strait's international waters. Gharibabadi dismissed the claim, calling it "nothing but an attempt to reassure the market." He warned that US minesweepers would become "very good targets" if they entered the area.