WASHINGTON, D.C. — A proposed agreement aimed at reopening the strategically vital Strait of Hormuz would give Iran significant authority over ships entering the Persian Gulf, according to Iranian and regional officials familiar with the negotiations, even as U.S. President Donald Trump expressed optimism that a deal could be reached as early as Wednesday.
According to Reuters, the draft agreement being negotiated by Iran and Oman would place Iran in charge of managing inbound maritime traffic through the narrow waterway, one of the world’s most important oil shipping routes. However, multiple sources cautioned that key provisions remain unresolved and no final agreement has yet been approved.
Trump told reporters that negotiations were progressing well and said an announcement on a deal could come as early as Wednesday. The White House has expressed confidence that diplomatic efforts are moving in a positive direction, although U.S. Secretary of State Marco Rubio stressed that discussions are continuing and that no final agreement has been reached.
Among the remaining points of contention are the extent of Iran’s authority over vessel inspections, the structure of transit fees, and operational control of shipping lanes. Reuters reported that Tehran is seeking to impose cargo transit fees of between 5% and 7%, while Oman has proposed a lower rate of around 3%. The United States, meanwhile, opposes any mandatory transit charges.
The negotiations represent one of the most significant diplomatic developments since months of conflict disrupted maritime traffic through the Strait of Hormuz, a narrow passage linking the Persian Gulf to the Gulf of Oman and the Arabian Sea. Roughly one-fifth of the world’s oil and a substantial share of global liquefied natural gas exports normally transit the waterway, making its security critical to international energy markets.
The proposed arrangement reportedly envisions Iran and Oman jointly overseeing shipping operations through the strait under an interim framework intended to restore commercial navigation and reduce regional tensions. Regional mediators, including Oman, Qatar, Pakistan and Saudi Arabia, have participated in efforts to broker the agreement.
Despite signs of diplomatic progress, security concerns remain high. Iran-backed Houthi forces have continued attacks on commercial shipping in the Red Sea, while recent maritime incidents have underscored the fragile security environment surrounding one of the world’s busiest energy corridors.
Energy markets are closely monitoring the outcome of the negotiations, as a successful agreement could help restore normal shipping flows and ease concerns over global oil supplies. However, officials involved in the talks emphasized that several major issues still require resolution before any agreement can be finalized.
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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