Tehran and Muscat agree on route details but reopening hinges on U.S. lifting its naval blockade of Iranian ports.
Iran and Oman have agreed on the geographical coordinates for a commercial shipping route through the Strait of Hormuz, a critical chokepoint for global oil flows. A senior Gulf official estimates a 50% chance of finalizing the agreement by Friday, though an Iranian official warned the waterway will not automatically reopen even if terms are settled.
The proposed framework remains contingent on Washington fulfilling Tehran’s demand to end its naval blockade of Iranian ports. The Strait of Hormuz handles roughly 20% of the world’s oil supply, and disruptions have historically triggered price volatility. Previous negotiations stalled amid regional tensions and U.S. sanctions.
West Texas Intermediate crude edged down 0.20% to $74.22 amid the uncertainty, reflecting cautious market sentiment over potential supply risks.