TEHRAN, Iran — Iran said Monday it was working to finalize an agreement with Oman on a plan to manage commercial shipping through the Strait of Hormuz, even as the 60-day deadline for a broader peace agreement between Tehran and Washington expired without a final deal.
Iranian Foreign Ministry spokesman Esmaeil Baghaei said Iran and Oman had reached an understanding on the map of a proposed transit route and were working to complete a joint statement. Under details previously discussed, vessels would use one route near the Iranian side of the strait for inbound traffic and another near Oman for outbound traffic, with no tolls during an interim period.
The proposed arrangement could help restore commercial shipping through one of the world’s most important maritime chokepoints. However, it remains unclear whether the agreement would satisfy Washington’s demands for the full reopening of the waterway.
The development came as the 60-day negotiating period established under a memorandum of understanding signed by Iran and the United States in June expired on Monday. The agreement was intended to halt hostilities, reopen the Strait of Hormuz and pave the way for negotiations over Iran’s nuclear program.
There was no indication that the deadline would be extended. Iran has argued that the timetable had effectively lost its relevance because the United States violated the interim agreement shortly after it was reached. Iranian officials have also said there has been no progress toward reviving the arrangement.
The two sides remain divided over several major issues. Iran has demanded control over the Strait of Hormuz, the withdrawal of U.S. military forces, an end to the blockade and compensation for wartime losses. Washington has rejected those conditions and has continued to apply economic pressure on Tehran.
Shipping through the Strait of Hormuz has meanwhile fallen sharply. Reuters reported that Kpler data showed only five commodity vessels passed through the waterway on Saturday and none on Sunday, compared with 31 vessels during the previous weekend. The disruption has raised concerns over energy supplies and global trade.
Oil markets have also responded to the continuing uncertainty. Brent crude rose 0.38 percent to $88.86 per barrel on Monday, while U.S. West Texas Intermediate edged up to $82.44, according to Reuters. Analysts said a much larger price increase could occur if major oil transit routes, including the Strait of Hormuz, were completely shut down.
The Strait of Hormuz is particularly important to the global energy market because it connects the Persian Gulf with the Gulf of Oman and the wider Arabian Sea. Before the current conflict, roughly one-fifth of the world’s traded oil supply moved through the waterway. Its prolonged disruption has therefore become a central issue in the diplomatic efforts to end the conflict.
For now, the emerging Iran-Oman arrangement offers a possible mechanism for restoring at least some commercial traffic, but it does not resolve the larger dispute between Tehran and Washington. With the 60-day peace deadline now expired and negotiations stalled, the future of the Strait of Hormuz remains closely tied to the wider diplomatic and military situation in the Middle East.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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