Iran and Oman Near Deal on Strait of Hormuz: What Are the Positions?

Iran says a deal with Oman to reopen the Strait of Hormuz is in its final stages, after the two countries confirmed they have agreed on coordinates for shipping lanes through the strategic waterway. The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman, lying between the territorial waters of Iran and Oman, partly off the coast of the UAE.

It is a major flashpoint in the US-Iran conflict because one-fifth of the world's oil and liquefied natural gas (LNG) passes through it during peacetime. Iran closed the strait after the US and Israel began airstrikes on Iran in late February, causing oil prices to spike and disrupting global energy markets. Recent negotiations have aimed at restoring a ceasefire and reopening the strait.

Timing of the announcement

It is unclear when the deal will be announced, but on August 6, Iranian Foreign Ministry spokesman Esmaeil Baghaei said Tehran and Muscat were close to finalizing an agreement on new commercial shipping corridors through the strait. Baghaei stressed that talks were “progressing” and that the two countries were in the review stage, drafting a joint statement if “some third parties do not obstruct this process”—an apparent reference to recent US airstrikes on Iran.

Iran-Oman negotiations began after Washington and Tehran signed a memorandum of understanding (MoU) on June 17, seen as a framework for a peace deal. The MoU stipulated that Iran would ensure the strait remained open to shipping for at least 60 days, but it collapsed last month over disagreements on routes and Iran's attacks on some vessels following the Oman-proposed, US-backed route.

Will the strait reopen immediately with a deal?

Baghaei dismissed the possibility that a bilateral agreement with Oman would automatically reopen the strait. According to him, the deal “cannot be understood by itself as the route being safe for ships to pass,” because the main cause of instability remains the US, with its naval deployment, blockade of Iranian ports, and other hostile measures.

Does a Hormuz deal mean US-Iran peace?

Experts say a strait deal does not necessarily herald an end to the crisis. Al Jazeera's correspondent in Tehran, Mahmoud Abdelwahed, said discussions are in the final drafting stage, but Iranian officials stress that talks are only with Oman, without external intervention.

On the US side, Washington rejects reports that Iran would control traffic in the strait; any temporary routes would not require permission, approval, or fees. Therefore, a shipping-lane deal does not necessarily end the crisis.

Positions of the parties

Iran: Tehran insists it is negotiating only with Oman, not directly with Washington, and that the two countries should jointly manage the strait according to their respective territorial waters. Iran will not reopen the strait until the US lifts its naval blockade of Iranian ports. Deputy Foreign Minister Kazem Gharibabadi said most of the new routes would pass through Iran's territorial waters, with a portion through Oman. Current temporary routes would be closed, and new routes would be used for 2–4 months or longer. Iran also hinted it would charge ships fees, although international maritime law prohibits charging transit fees in international straits but does allow fees for services such as pilotage, navigational assistance, and environmental protection.

US: The Trump administration wants full freedom for maritime commerce through the strait, without Iranian fees or requirements for ships to seek Tehran's permission. A US official told the AP that the temporary deal does not include Iranian approval or fees. President Trump declared: “I will not let them charge fees. If someone charges fees, we will charge fees.” The world's eight largest shipping associations sent a letter to UN Secretary-General Antonio Guterres and the head of the International Maritime Organization, protesting any fee collection at the strait, saying it violates international norms and harms the global economy.

Oman: Chris Featherstone, a political scientist at the University of York, said for Oman, the deal is an opportunity to bring regional stability. Oman previously mediated between the US and Iran before the conflict, and a new deal could be a stepping stone for future Washington-Tehran negotiations.

Concessions from both sides

Both Iran and the US appear willing to make concessions. According to Reuters, Iran has dropped its initial demand for control of the entire two-way shipping lane but is “unlikely to change its position” further. Iranian media say the talks aim to establish a “middle corridor” to replace the existing northern and southern routes, while preserving “Iran's rights as a littoral state.”

Meanwhile, the US has repeatedly said it would not accept a deal that gives Iran control of the strait, but analysts suggest Washington may have to compromise. Trita Parsi, executive vice president of the Quincy Institute, emphasized that the energy crisis makes the US priority ensuring safe passage, not necessarily preventing Iranian involvement in strait management. David Des Roches, former director for the Arabian Peninsula at the US Department of Defense, said a final deal is unlikely to exclude Iran from managing its coastal waters.

What each side gains

Sina Azodi, assistant professor of Middle East politics at George Washington University, believes the Iran-Oman deal is a diplomatic compromise and an acknowledgment of Iran's strategic influence in the Persian Gulf. He doubts the Strait of Hormuz will return to its pre-war status: “The Iranians have learned that closing the strait can make the global economy scream. This is a strategic asset they are unlikely to give up.” Azodi called Oman a “useful and trustworthy” intermediary between the two countries.

Simon Mabon, professor of international politics at Lancaster University in the UK, said for the US, a Hormuz deal is serious because it could set a precedent for disrupting global trade. “For the US, the key is to reopen the route, get oil and trade flowing to reduce costs. But whether they can do that while maintaining their strategic goals with Iran remains difficult. Iran is in a strong position; if the blockade is lifted, they will be in a very strong position,” he said.