Iran, Oman Reach 'In Principle' Deal on Hormuz Transit Route

Iran announced on Monday, August 17, it reached an in principle understanding with Oman on a plan for ships to transit the Strait of Hormuz.

The two sides are working to finalize details and issue a joint statement. Iranian Foreign Ministry spokesman Esmail Baghaei stated an understanding has been reached regarding the map of the transit route. The agreement is being prepared as a package, including the route map. Details suggest ships could enter the strait along a route close to Iran and exit near Oman, without paying fees or tolls during an interim period.

Baghaei acknowledged negotiations moved slowly but confirmed plans to finalize the arrangement. This announcement came as a 60-day negotiating period for a broader peace deal between the United States and Iran expired without an agreement. Shipping through the Strait of Hormuz slowed over the weekend, with no transits recorded on Sunday, August 16, according to Kpler tracking data.

Only five cargo ships passed through the strait on Saturday, compared to 31 vessels the previous weekend. Shipping traffic hit a three-month low last week, with a five-day average of 13 vessel transits on Tuesday, August 11. Overall shipping is down 90% since the war started on February 28, when the Strait of Hormuz averaged about 130 vessel transits per day.

The strait typically carries about one-fifth of the world's traded oil supplies. Iran effectively closed the strait after Israel and the US attacked the country on February 28. Reopening the waterway has been a primary focus of indirect negotiations between Iran and the US. Iranian Foreign Minister Abbas Araqchi said Iran had not decided to resume talks with the United States. Araqchi previously stated that Washington must meet Iran's conditions regarding the strait for shipping to resume.