Hormuz Strait Reopening Deal Nears as Tehran, Muscat, and Washington Make Progress

The Strait of Hormuz, a critical oil shipping route in the Middle East, may soon reopen as Tehran, Muscat, and Washington near a deal to end its effective closure. The strait, which carries about 20% of the world's oil trade, has been shut since late February 2026 due to tensions between Iran and the US.

The proposed framework for reopening the strait would establish a temporary corridor with a novel power-sharing arrangement, where Iran oversees inbound traffic while Oman manages outbound lanes. The initial reopening period is expected to last 60 days, and Iranian officials have emphasized that the deal alone is not enough to reopen the strait without additional US concessions.

The closure of the Strait of Hormuz has already had a significant impact on global energy pricing, with Brent crude spiking above $100 per barrel at multiple points during the disruption. The agreement between Tehran and Muscat remains formally tentative, contingent on the US taking steps that Iran considers sufficient.