US Blocks Iran-Oman Deal, Oil Prices Drop Despite Trump's Reassurances
Oil prices dropped on Wednesday despite Iran's claim that the US is blocking a deal between Iran and Oman to establish a safe route through the Strait of Hormuz. The Iranian Revolutionary Guard Corps said Tehran and Muscat have reached an agreement, including fees charged for transit, but the deal cannot move forward unless the US accepts the conditions.
The US has not commented on the deal, but President Donald Trump claimed that all mines had been cleared from the waterway. Trump also announced a plan to impose secondary sanctions on those 'enabling' Iran's economic activity, dubbed 'Operation Economic Outcast.'
Treasury Secretary Scott Bessent said the measures could impact Chinese banks, stating that no one is above the reach of US sanctions. Iranian parliament speaker Mohammad Bagher Qalibaf acknowledged the impact of economic pressure, saying military might alone is not enough to move the country forward.