Iran, Oman near deal on Hormuz shipping lane

Iran and Oman are in advanced talks on an agreement governing commercial shipping through the Strait of Hormuz, one of the world’s key oil transit chokepoints. Iranian Foreign Ministry spokesman Esmail Baghaei said the two sides are working on a joint statement that is in the final stage of review and drafting. Two regional officials said negotiators have already finalized a draft text and are now waiting for approval from Iran’s supreme leader before any announcement.

Baghaei described the discussions as focused on defining mechanisms for managing maritime traffic through the strategic waterway. He warned that the joint statement would be issued only if unspecified parties do not obstruct the process, underscoring that the outcome still depends on political decisions in Tehran. Separate comments from Iranian negotiators framed the talks as aimed at operational arrangements rather than a broader political settlement.

Officials familiar with the emerging deal say it would create a coordinated two-way corridor splitting inbound and outbound traffic between Iranian and Omani-controlled routes. Under the concept described by Iranian and regional officials, inbound commercial ships entering the Gulf would transit a channel close to or within Iran’s territorial waters. Outbound vessels leaving the Gulf would travel along a southern lane through Omani waters, in coordination with Iran.

Iranian officials and some regional sources say this configuration could give Tehran greater oversight or control over vessels entering the Gulf. Iranian representatives have presented the talks as a way to protect the country’s sovereign rights and security interests while providing a structured, temporary operational corridor. Some Iranian negotiators have discussed time-limited arrangements, though no specific duration has been formally announced in the draft now under review.

U.S. officials have publicly indicated that a deal on Hormuz traffic management may be close. Treasury Secretary Scott Bessent said an agreement to unlock the waterway could be reached this week, while other senior officials have signaled progress in the discussions. At the same time, U.S. Central Command has stressed that the southern route through the Strait of Hormuz remains free and open to all commercial vessels seeking to transit the international waterway.

The prospective Iran-Oman arrangement follows earlier efforts to codify shipping routes that did not hold, but current statements focus on the technical and operational nature of the new plan. It remains unclear when a joint statement might be issued, as the draft awaits Iran’s supreme leader’s final decision. Until then, existing shipping patterns, including the open southern lane, continue to govern commercial traffic.

Oil markets have responded to indications of progress toward a Hormuz shipping deal. On August 5, Brent crude (UKOIL) traded in a narrow range around $79 to $79.6 per barrel, while U.S. West Texas Intermediate (USOIL) was in the mid-$70s, around $75 to $75.9 per barrel. Prices were described as little changed on the day after earlier steep declines linked to expectations that an agreement could stabilize transit through the strait.

Reports that Iran and Oman had reached or were close to reaching accord on a proposed route contributed to oil holding near these levels rather than extending prior losses. Market participants appeared to be waiting for confirmation of a final political sign-off and details on how the new corridor would operate in practice. For now, price action reflects both the potential for reduced disruption risk and lingering uncertainty over the timing and scope of any implemented deal.