Iran, Oman, US ‘close’ to Hormuz deal: What do they all want?

Diplomatic efforts are intensifying to secure an agreement that would restore shipping through the Strait of Hormuz, a critical waterway through which approximately one-fifth of global oil supplies transited before recent disruptions. The proposed accord seeks to reinstate a ceasefire established on June 17 and address disputes over commercial passage through the strategic channel, potentially opening pathways for wider negotiations on Iran's nuclear activities and other contentious issues.

US President Donald Trump expressed optimism about the negotiations, stating they were progressing favourably and suggesting resolution could come within two days. He also indicated that if an agreement was not reached, military action would follow to ensure the strait remained open. Trump's comments reflected his established pattern of alternating between military threats and diplomatic overtures toward Iran.

Iran's government has consistently denied engaging in direct talks with Washington, instead characterizing discussions as occurring between Iranian and Omani officials. Oman, whose territorial waters include portions of the strait, has historically served as an intermediary between the two nations. Iranian officials described the Oman-led talks as positive while noting that US military threats remained a significant obstacle to reaching a settlement.

The negotiations focus on two core issues: control of the Strait of Hormuz and whether Iran should be permitted to levy fees on vessels transiting the waterway. Commercial traffic through the channel has been severely disrupted, with only eight vessels passing through on a recent Monday compared to approximately 130 ships daily before hostilities escalated on February 28. This disruption has raised concerns about potential sharp increases in oil prices if the situation persists.