Breakthrough or Major Concession? Emerging Strait of Hormuz Deal Takes Shape

Iran may receive control over vessels entering the Persian Gulf through the Strait of Hormuz under an emerging agreement with Oman, a senior Iranian source and two regional officials told Reuters today (Wednesday). If signed, it would mark one of the most significant concessions made to Tehran so far in the ongoing talks—and could reshape the regional balance of power.

Despite the progress described by the sources, they dismissed U.S. President Donald Trump’s claims that the Strait of Hormuz is close to reopening. They said major disagreements remain unresolved. One regional official told Reuters that "the concession has already been made regarding a certain form of control over the Strait of Hormuz," but stressed that there is still no agreement on how that control would actually be implemented.

According to another regional official, one of the central issues is the precise definition of that "control." Gulf states are demanding that oversight of vessels be carried out by countries in the region, and that any payments by ships be strictly voluntary.

The senior Iranian source added that the draft agreement already on the negotiating table gives Iran control over vessels entering the Gulf through the strait. However, one of the final points of contention concerns what role Tehran would have regarding ships sailing in the opposite direction as well.

Meanwhile, Iranian Foreign Ministry spokesperson, Esmail Baghaei, said that the "geographic characteristics" of the shipping routes in the Strait of Hormuz had already been agreed upon by Iran and Oman. According to him, the two countries’ joint announcement is in its final drafting stages, unless "certain third parties" intervene—an apparent reference to the United States and Israel. At the same time, officials in Tehran stressed that an agreement with Oman in itself does not mean the Strait of Hormuz is safe for passage.

Washington did not immediately respond to the newly revealed details of the agreement. In recent months, U.S. officials have repeatedly emphasized that the United States would not accept an arrangement allowing Iran to control access to one of the world’s most important energy routes. Even so, Trump and other senior administration officials continue to say that an agreement to end the war that began in February is closer than ever.

According to the report, while there are no direct talks between Washington and Tehran, Iran is negotiating with Oman, which controls the opposite shore of the Strait of Hormuz. Last week, Iran rejected an earlier Omani proposal, arguing that it did not give Tehran enough influence.

In an interview with Fox News, Trump said the talks were "moving along well," noting that "negotiations that lasted all day" took place yesterday. He said, "The Strait of Hormuz will open very soon," but warned: "If they pull back again, they will take a very hard hit."

The report also says Iran is demanding a fee of between 5% and 7% of the value of cargo carried by ships passing through the strait. Oman is proposing a lower fee of about 3%, while the United States opposes any payment. One option under consideration is to make the payments officially voluntary, even though fears of Iranian attacks could lead shipping companies to pay anyway.

Meanwhile, escalation is continuing at sea as well. The Houthis announced that they had again attacked a Saudi tanker in the Red Sea, as part of their effort to enforce what they describe as a blockade on Saudi oil exports traveling along the route that bypasses the Strait of Hormuz. In addition, Indian authorities said that an Indian-flagged vessel sank Tuesday near Yemen’s coast after being hit by a projectile. All 14 crew members were rescued safely, while the government opposed to the Houthis in southern Yemen accused the group of carrying out the attack.