Iran announced an agreement with Oman on a proposed shipping route through the Strait of Hormuz, with Iranian Foreign Ministry spokesman stating that the joint statement is in its final drafting stage. Negotiations between Tehran and Muscat are described as "forward-moving." This comes amidst hopes for a reopening of the critical waterway for energy supplies, which has been largely closed since a war began on February 28. U.S. officials have indicated that any temporary routes would not include tolls or charges.
However, there appears to be a fundamental disagreement between Iran and the U.S. regarding the Strait's status. Iran seeks to impose service fees and maintain some measure of control, while the U.S. insists on the Strait returning to its pre-war status as an open international waterway without impediments. A draft plan reportedly put forth by Iran, which would block passage for U.S. and Israeli ships and impose other restrictions, was quickly dismissed by the Trump administration as a nonstarter.
Despite positive remarks from U.S. Treasury Secretary Scott Bessent and President Trump about ongoing negotiations and the possibility of a deal, market skepticism persists. Shipping traffic through the Strait of Hormuz has significantly dwindled, with only 33 vessels transiting from Monday to Thursday this week, compared to 50 in the week prior and the usual 130 to 140 ships before the war. Only six crude oil tankers exited the Strait this week. Shipowners are wary of entering the waterway, even with steep discounts offered for crude from Iraq's Basrah Oil Terminal, indicating that a broader, durable settlement is still elusive.
