Iran and Oman Reach Deal on Strait of Hormuz Management

Iran and Oman have reached a deal on managing and splitting revenues from the Strait of Hormuz, a critical waterway that handles around 20% of global oil and LNG shipments. The agreement was finalized during talks in Tehran on August 25-26 and represents a significant step towards reopening the passage, which has been heavily restricted since early 2026.

The framework includes a temporary joint navigational corridor and coordinated mine-clearing operations expected to unfold over the next 30 to 60 days. Inbound traffic would traverse Iranian waters, while outbound traffic would use Omani waters, creating a basis for shared revenue through service fees tied to security and navigation services.

The deal also marks a notable level of military cooperation between Tehran and Muscat, which has been improbable in recent years. Joint demining operations underscore the dangers posed by unexploded ordnance during the period of restricted traffic.