Iran is demanding control over inbound shipping through the Strait of Hormuz and oversight of outbound traffic, with the ability to intervene if necessary. This is part of a temporary plan being discussed with Oman to reopen the strategic waterway, which has been largely blocked since late February. A senior Iranian source involved in the talks indicated that the outbound lane would follow a route between Iran and Oman, with exit clearance granted through Oman after Iran is notified. This proposal moves from Iran's initial position of seeking full control over traffic in both directions.
The Strait of Hormuz is a critical chokepoint, facilitating about one-fifth of the world's oil supplies and other vital goods. The dispute over its control has been a major sticking point in efforts to end the US-Israeli war on Iran. Washington maintains that a June memorandum of understanding required Iran to reopen the waterway, while Tehran argues the text explicitly preserved its authority over shipping. Iran is reportedly seeking a new maritime route that respects the sovereign rights of both Iran and Oman and safeguards national interests and security, rather than fully opening the strait to free passage.
Discussions between Tehran and Oman are reportedly in the final stages, aiming for an understanding on an acceptable route. However, there is little clarity, and Iran does not appear willing to allow free passage for all vessels. Treasury Secretary Scott Bessent had suggested a deal could be reached by Tuesday or Wednesday, potentially allowing freedom of movement for commercial ships. Brent crude oil prices fell approximately 4.5% to just over $83 a barrel after Iran's foreign minister, Abbas Araghchi, stated talks were in final stages. Earlier, US crude oil futures fell nearly 6% to below $76 per barrel, with expectations of further drops if ships stuck in the Persian Gulf could exit.
Iran has been accused of turning the blockade into a business, with Lloyd's List reporting vessels paying up to $2 million per transit for passage through an Iranian-controlled corridor. J.P. Morgan estimated a fully operational regime could earn Tehran $70 billion to $90 billion annually. A General License X waiver from the US Treasury's Office of Foreign Assets Control, which made the reopening commercially possible, is set to lapse around August 21, adding urgency to the negotiations. This entire situation follows a period where Iran attacked tankers transiting Hormuz along Oman's coast, prompting US airstrikes and a naval blockade.
The article from Bloomberg specifically highlights Iran's desire to bar US and Israeli ships from Hormuz as part of any deal. While general discussions about reopening the strait are ongoing, Iran's specific demand regarding US and Israeli vessels is a critical component of its negotiating position.
