Iran and Oman Nearing Deal on Strait of Hormuz Shipping

Oil prices remained steady on Thursday after Iran and Oman announced they were nearing an agreement to allow shipping through the Strait of Hormuz. The Strait is a critical waterway that handles about one-fifth of global oil and gas shipping, with a significant impact on global energy markets.

The development comes after prolonged negotiations between Iran and Oman, which excluded the United States. According to Iranian news agency IRNA, both sides have reached a broad agreement on inbound and outbound shipping routes.

However, market sources have raised concerns about a fee-based transit system proposed by Iran and Oman. This would require transiting vessels to pay a fee for each passage through the strait, which is considered illegal by the International Maritime Organization.