Iran and Oman Near Deal on Joint Management of Strait of Hormuz

Iran and Oman are finalizing an agreement to jointly manage the Strait of Hormuz, a strategic waterway for global energy trade. The deal would give Iran control over ships entering the Gulf through the strait.

The arrangement is contingent on the United States fulfilling its commitment to end its naval blockade of Iran's ports, which Tehran sees as a key condition for reopening the route to shipping.

According to Iranian officials, the proposed deal would allow commercial ships to pass through Iranian territorial waters, both on inbound and outbound legs. The two countries have agreed on the geographical coordinates of the route, but details on how 'control' would be defined remain unresolved.

The proposed fees for using the strait are a point of contention between Iran and Oman. Iran is seeking fees of between 5% to 7% of the price of cargoes from ships using the strait, while Oman is discussing fees of around 3%. The United States wants no fees at all.

The deal would be a significant development in the region, as the Strait of Hormuz carries around a fifth of the world's oil and LNG exports. Prices have surged since the dispute over the waterway erupted, piling economic and political pressure on Washington.