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What we know about Hormuz deal ‘close’: What’s the latest on each side’s positions?

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Iran has announced that a potential agreement with Oman to reopen the Strait of Hormuz is currently “on the verge of being finalised.” This development follows confirmation from both nations that they have successfully agreed upon specific coordinates for new shipping routes through the critical waterway, which serves as a vital artery for global energy supplies. The Strait of Hormuz connects the Persian Gulf to the Gulf of Oman, flanked by Oman and the United Arab Emirates on one side and Iran on the other. It flows through the territorial waters of Iran and Oman with some of its outskirts in UAE waters. It remains a primary flashpoint in the ongoing conflict between Iran and the United States, given that approximately one-fifth of the world’s oil and significant volumes of liquefied natural gas transit through this narrow passage daily.

In recent weeks, intensive negotiations have been underway to reach a framework that would restore a ceasefire and facilitate the reopening of the strait. It is unclear when a deal will be formally announced, but on Wednesday, Iranian Ministry of Foreign Affairs spokesperson Esmaeil Baghaei signalled that Tehran and Muscat were close to finalising an agreement on a new commercial shipping corridor. Baghaei told reporters the negotiations were “moving forward” and highlighted that “if certain third parties do not obstruct the process, the two countries are also in the final stage of reviewing and drafting a joint statement.”

Talks between Iran and Oman began after Washington and Tehran signed a June 17 memorandum of understanding (MoU) intended as a framework for a peace agreement. The MoU stipulated that Iran would ensure the strait remained open to shipping for at least 60 days, but that arrangement fell apart last month. Iran closed the strait after the US and Israel began strikes on Iran at the end of February, sending oil prices spiralling and causing havoc in global energy markets. The two countries primarily disagreed on which routes ships should take, and Iran attacked several ships that had taken an Oman-approved route that was backed by the US.

Baghaei said on Wednesday that the ongoing talks with Oman covered the technical, legal, security, and environmental aspects of the proposed shipping corridor. However, he has dismissed claims that a bilateral agreement with Oman would automatically lead to the immediate reopening of the Strait of Hormuz. A potential deal with Oman, he stated, “cannot in itself be interpreted as meaning the waterway has become safe for passing vessels,” arguing that the main source of instability remained the US and its naval deployments, maritime blockade of Iranian ports, and “hostile measures against the country and its interests.”

Reporting from Tehran, Al Jazeera’s Mahmoud Abdelwahed noted that a deal on the Strait of Hormuz does not mean an “end to the crisis.” He explained that while discussions are at the final drafting stage pending a joint statement, Iranian officials maintain these talks are exclusively with Oman, without any foreign or outside interference. Conversely, Washington rejects reports suggesting that Iran would have control over traffic in the strait. The official said Washington remained committed to restoring the previous system in which “no party controls the lanes or the ability to transit through them.”

While Tehran has said it has agreed on the coordinates for shipping routes with Oman, it continues to insist it is negotiating only with Muscat, not directly with Washington, and maintains that Iran and Oman should jointly manage the waterway. Sina Azodi, a non-resident fellow at the Atlantic Council, noted that Iran has learned that by blockading the strait, it can make the global economy suffer. He described the strait as a strategic asset that Tehran will not relinquish easily, though he credited Oman as a “very helpful, trustworthy mediator” between Iran and the US.

Simon Mabon, a professor of international politics at Lancaster University, said that for the US, the Hormuz deal is very serious due to concerns about how it impacts global stability and whether any deal can be reached while keeping strategic goals on Iran in line. Iran has also stated that it will not reopen the strait until the US naval blockade of its ports is lifted. On Wednesday, Kazem Gharibabadi, Iran’s deputy foreign minister for legal and international affairs, reiterated that the blockade must end as part of any broader resolution.

While existing temporary routes would be closed, the new inbound and outbound shipping routes would be used for two to four months or until a more permanent security architecture is established. Furthermore, Iran has intimated that it plans to introduce some form of fee system for ships. Under international maritime law, tolls for transit are highly contentious, and US officials have said President Donald Trump’s administration wants total freedom of commercial navigation through the waterway without Iranian interference or taxation.

A US official familiar with the negotiations told The Associated Press this week that any temporary arrangement would not be accepted if it left Iran with unilateral control over maritime traffic. The US remains focused on ensuring that the strait remains an international waterway, free from the influence of any single regional power. The tension persists as both sides weigh the economic necessity of open seas against their respective military and political objectives in the region.

The complexity of the negotiations is compounded by the lack of direct communication between Tehran and Washington. Oman’s role remains the primary bridge, though the success of these talks hinges on whether the proposed technical coordinates can satisfy both the Iranian demand for sovereignty and the American demand for unrestricted, neutral passage. Analysts suggest that even if a deal is signed, the underlying friction between the two nations will likely continue to manifest in other maritime and regional theaters.

As the final drafting stage concludes, the international community remains watchful of the potential for a breakthrough. The global energy market, still volatile from the disruptions earlier this year, is highly sensitive to any news regarding the status of the strait. Whether the joint statement between Iran and Oman will be sufficient to de-escalate the situation or merely serve as a temporary pause in hostilities remains the central question for diplomats in the region.

Ultimately, the path to a lasting reopening of the Strait of Hormuz remains fraught with diplomatic hurdles. With both the US and Iran maintaining rigid positions regarding control and security, the agreement with Oman serves as a fragile mechanism for stability. The coming weeks will determine if the technical consensus on shipping coordinates can translate into a durable peace that prevents further disruption to global energy supplies and maritime security.

“I’m not going to let them charge,” he said.

In a letter to UN Secretary-General Antonio Guterres and the head of the International Maritime Organization that was sent on Monday and made public on Wednesday, the groups said allowing authorities to charge vessels to

Similarly, this could establish stepping stones for future negotiations between Washington and Tehran,” he said.

Speaking to reporters on Monday, Trump rejected any suggestion that Iran should be allowed to charge vessels using the strait.

In a letter to UN Secretary-General Antonio Guterres and the head of the International Maritime Organization that was sent on Monday and made public on Wednesday, the groups said allowing authorities to charge vessels to transit the strait would violate international norms and harm the global economy.

Quoting a senior Iranian source involved in the negotiations on Tuesday, the Reuters news agency reported that Tehran has already dropped its original demand for full control over shipping in both directions but is “unlikely to change its position” further.

Featherstone said Iran has been consistent in demanding that it retains some control over the Strait of Hormuz, and in saying that they do not want to see a return to the pre-conflict context.

“Iran has maintained its position with a lot of consistency, and this has contrasted to the Trump administration’s lack of a clear goal for the conflict and lack of a route out of the current conflict,” he said.

Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, told Al Jazeera on Wednesday that the global energy crisis means Washington’s priority is ensuring ships can pass safely rather than preventing Iran from playing any role in administering the strait.

If reopening the strait requires acknowledging that Iran possesses some capacity to regulate traffic in waters along its coast, Washington “should not reject an agreement merely because it fails to preserve the appearance of unqualified American dominance”, he said.

David Des Roches, a former director of Arabian Peninsula affairs in the US Department of Defense, said any eventual agreement was, therefore, likely to reflect the reality that Iran cannot simply be excluded from managing a waterway on its coast.

“I think that’s probably about the best that can be reached at this point in time.”

“For the US, it’s about getting things open and getting oil and trade flowing and trying to bring down costs essentially.

“But I think the Iranians have got the upper hand.