Iran and Oman Agree to Revenue Sharing for Critical Strait
The Islamic Revolutionary Guard Corps (IRGC) has announced that it has reached an agreement with Oman on revenue sharing for the Strait of Hormuz, a crucial waterway that has been at the center of tensions between Iran and the US. According to IRGC spokesman Hossein Mohebbi, agreements have been made regarding each country's share of the strait's waters as well as their share of its revenues. This development goes beyond a joint statement issued by the two countries' foreign ministries on Tuesday, which discussed an 'interim framework' for resuming ship transits but stopped short of announcing an agreement and didn't mention fees.
The Strait of Hormuz is a critical waterway that connects the Persian Gulf to the Arabian Sea, with Iran controlling a significant portion of it. The development comes as tensions between Iran and the US continue over control of the strait. IRGC warned that reopening the strait will take more than just a deal with Oman.
The news has had an impact on oil prices, with West Texas Intermediate (WTI) crude up 0.72% at $81.32 as of this writing.