Iran, Oman close to deal on Hormuz shipping route. Can it lead to a peace agreement with US?

Iran and Oman have agreed to a deal for transiting of ships through the Strait of Hormuz, but Tehran has reiterated that the reopening would depend on “certain parties”, apparently referring to the United States (US) which maintains that the strategic waterway must remain open for all merchant vessels.

Hormuz remains under Iran’s de facto control since the conflict in the Middle East began on February 28, but its foreign ministry spokesperson, Esmail Baghaei, has said a draft deal is all set to be signed with Oman, even as the US maintains that an agreement to reopen the Strait was ‘imminent’.

“The geographical coordinates of the route envisaged by the two sides have been agreed upon and, if certain third parties do not obstruct the process, the joint statement of the two countries, containing the main considerations and points of agreement, is also in the final review and drafting stage,” AFP quoted Baghaei as saying.

“The factors making the Strait of Hormuz insecure still exist on the part of the United States, particularly the naval blockade and other aggressive and threatening actions against Iran and its interests,” he added.

The importance of Hormuz

Nearly a fifth of global crude passes through the Hormuz, making it extremely significant to maintain the global supply chain balance. But since the was began around five months ago, global crude oil prices have increased consistently, which is only increasing pressure on the US to conclude its military operations.

Brent crude, the international standard, remained on USD 80 per barrel on Wednesday, which though was below the levels it increased to after the conflict began, according to a report by the Associated Press (AP). 

Can a Hormuz deal end the conflict?

Regional officials, cited by the AP, have said the draft deal with Oman will still require a go ahead from Iran’s Supreme Leader Ayatollah Ali Khamenei, who has not been seen in public since his father and predecessor Ayatollah Ali Khamenei was killed earlier this year. However, they described the deal as a temporary solution to the dispute over Hormuz.

They also said that the deal is tied to the agreement that the US and Iran signed in June, which collapsed later after the two countries relaunched strikes against each other. However, they maintained that the potential deal will also pave the way for the US and Iran to resume negotiations on Tehran’s nuclear programme. 

Earlier, they had said the potential agreement would have ships enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman. Service fees would be charged for providing security and preserving the maritime environment, the officials said. The US, however, has said that Iran charging fees is against the agreement and the Hormuz must remain free for all vessels.

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