Iran says Hormuz deal with Oman is close, but warns security isn’t guaranteed
4 min readUpdated: Aug 6, 2026 12:06 PM IST
Iran and Oman have reached a preliminary understanding on a new shipping route through the Strait of Hormuz, with Tehran saying a joint announcement is expected once final details are settled. However, Iran cautioned that any agreement would not automatically guarantee security in the strategic waterway.
The development comes as US President Donald Trump insists negotiations to reopen the strait are progressing, even though Iranian officials say key issues remain unresolved.
The Strait of Hormuz handles nearly one-fifth of global oil shipments. India imports a significant share of its crude oil from Gulf producers, making any agreement governing navigation through the waterway critical for fuel prices, shipping costs and energy security.
According to Reuters, the proposed arrangement would allow Iran to oversee vessels entering the Gulf through the strategic waterway.
The Strait has remained heavily disrupted since fighting between the United States and Iran escalated earlier this year, prompting concerns over global oil supplies and maritime trade.
Despite the apparent move towards accommodating some of the Iranian demands, the sources fended off claims by US President Donald Trump that an agreement to reopen the strait was looming, noting that several key issues still needed to be resolved.
Baghaei described the negotiations between Tehran and Muscat as “professional” and “moving forward”, stating that “the two sides had reached a mutual understanding on the geographical parameters of the route under discussion”.
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He said that the joint statement outlining the agreement between Tehran and Muscat was in the final stages of review and drafting and that it would be issued provided certain third parties do not obstruct the process.
Trump says talks with Tehran seemed ‘to be working out quite well’
The US president said that talks with Iran were “doing very well”, even as the conflict between the two countries stretches to its sixth month.
In an interview with Fox News, Trump struck an optimistic tone about the negotiations with Tehran.
“I hear they are doing very well,” Trump said.
“I am not looking to kill people and totally obliterate everything, and that’s where we were headed. And they wanted to negotiate, and we’re doing that, and it seems to be working out quite well,” he added.
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He also claimed that a deal on reopening the Strait of Hormuz was imminent.
“I am not looking to kill people and totally obliterate everything, and that’s where we were headed. And they wanted to negotiate and we’re doing that, and it seems to be working out quite well,” Trump said in the interview.
The development comes days after The New York Times reported that Iranian and Omani officials were closing in on a framework that would create separate shipping lanes, with inbound vessels to the Persian Gulf travelling through a channel controlled by Iran and outbound traffic using a route closer to Oman. Iranian officials quoted by NYT said the proposal includes a “service fee”, rather than a toll, to cover environmental protection, security and staffing, with revenue shared equally between Iran and Oman.
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World · Middle East · Explainer
Iran–Oman Strait deal: what’s on the table?
Mediated by Oman, Iran is negotiating a phased reopening of the Strait of Hormuz. The sides are still exchanging proposals — and Iran and the US disagree sharply over control, fees and navigation.
.Developing · proposal, not a final deal
What Iran and the US disagree on
Iran’s position
US position
Shipping lanes
Inbound route through Iranian waters
No Iranian control of the lanes
Fees
A per-vessel “service fee” (shared with Oman, per Tehran)
No mandatory tolls or fees
Navigation
Iranian oversight of transit
Freedom of navigation
Reopening
Tied to security & sanctions concerns
Immediate, unconditional reopening
The talks are Iran–Oman; the US is kept informed but is not directly involved, and Iran says it has no plans to negotiate with Washington. Iran rejected Oman’s plan to split the lanes 50/50 and countered for more control. Oman proposes “voluntary” fees (modelled on the Strait of Malacca); the US and Oman oppose mandatory tolls.
One of the world’s most vital waterways
Iran
Oman · UAE
← Persian Gulf
Gulf of Oman →
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.
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Inbound (proposed: Iran side)
Outbound (proposed: Oman side)
.
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.
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~20%
of the world’s oil & LNG passed through the Strait before the war — about a fifth of global supply
.Connects the Persian Gulf to the Gulf of Oman and the Arabian Sea.
.The only sea route out for Gulf oil exporters — Saudi Arabia, the UAE, Qatar, Kuwait, Iraq and Iran.
.A vital route for Asia, including India, Japan, China and South Korea.
Lanes shown are the proposed corridors under negotiation, not an agreed layout; schematic, not to scale.
From war to negotiations
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Late Feb 2026 — US–Israeli strikes on Iran begin; the strait becomes a flashpoint.
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Iran fires on shipping; traffic through the Strait of Hormuz is disrupted.
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June — an initial US–Iran deal collapses in early July after Iran fires on ships using an unapproved route.
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Oman mediation steps up with a Gulf-backed plan; Iran and Oman exchange counter-proposals.
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Aug 1 — Trump pauses planned new strikes, citing the “parameters of a deal.”
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Now — reports say the sides are nearing a phased reopening, but key terms remain unresolved.
Timeline compiled from Al Jazeera, Reuters, The National and NYT reporting; dates approximate.
Who wants what
Iran
Reopen shippingRetain strategic leverageA service feeSanctions relief
United States
Freedom of navigationNo Iranian controlOpen shipping lanesNuclear track
Oman · mediator
Safe navigationVoluntary feesRevenue sharing (per Iranian officials)
Positions as stated publicly and via mediators; the “revenue sharing” framing is attributed to Iranian officials and disputed by Washington.
Why Indians should watch the Strait
OIL
Crude oil imports
₹
Fuel prices
SHIP
Shipping & insurance costs
TRADE
Gulf trade flows
CPI
Inflation risk
GAS
Energy security
India imports a large share of its crude and LNG via Hormuz, so disruption there can lift pump prices, freight and insurance rates, and feed into inflation.
Sources: Al Jazeera · Reuters · The New York Times · The National · Middle East Monitor · Jerusalem Post · i24News · statements by Iranian and US officials. A developing, contested negotiation; terms are proposed and reconfirm against the latest wire before publish.
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However, a US official familiar with the negotiations rejected that account, telling the publication that any temporary navigation arrangements would not require Iranian permission or involve tolls or fees. According to the official, any revised shipping routes would be temporary and would preserve freedom of navigation.
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The reported differences reflect broader disagreements over what the negotiations are intended to achieve.
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