Iran, Oman Reach Deal to Share Strait of Hormuz Revenue Amid Tensions

Iran and Oman have reached an agreement on sharing revenue from the Strait of Hormuz, which connects the Gulf to the Arabian Sea.

The Islamic Revolutionary Guard Corps' spokesman Hossein Mohebbi announced the deal, saying that agreements had been made regarding each country's share of the strait's waters as well as Iran and Oman's share of its revenues.

This development is seen as a step towards normalizing traffic through the waterway, which has been largely closed since the US and Israel launched their war against Iran in February 2023. The strait serves as a conduit for about one-fifth of the world's oil and liquefied natural gas.

Tehran has said that any normalization of traffic would depend on the US complying with the terms of a memorandum of understanding signed in June, including lifting sanctions and a naval blockade on its ports. However, the US has not signaled its readiness to do so.