Iran and Oman negotiate reopening of Strait of Hormuz amid transit disputes

Iran and Oman are nearing an agreement to reopen the Strait of Hormuz, a critical global shipping artery, following weeks of instability. The proposed deal aims to restore transit for 60 days, with incoming vessels assigned to routes near Iranian waters and outgoing traffic restricted to channels near Oman. While Iranian officials, including Deputy Foreign Minister Kazem Gharibabadi, describe this as a new model independent of prior commitments, regional stakeholders remain cautious. Proponents suggest the plan excludes transit fees, though eight major shipping associations have formally requested the UN to oppose any such charges.

Simultaneously, the Iranian parliament is reviewing a draft bill that could complicate the situation. The proposed legislation seeks to ban transit for vessels from "hostile" nations, including the United States and Israel, and mandates fines of up to 20% of a ship's cargo value for violations. Market activity reflects this uncertainty, with only 33 commercial vessels navigating the Strait between Monday and Thursday, a significant decline from the previous week. The agreement remains subject to final approval by Iran's Supreme National Security Council, while U.S. President Donald Trump has expressed expectations that the waterway will reopen shortly.