Iran and Oman are closing in on a deal designed to ensure safe passage through the Strait of Hormuz and determine the future management framework for this vital economic waterway.
In a joint statement released Tuesday, the two Gulf nations said their foreign ministers have reviewed a proposed framework that includes establishing a temporary joint navigation corridor through the strait, alongside a collaborative minesweeping project to clear explosives from the waterway. The announcement helped extend the recent decline in international oil prices, with benchmark Brent crude slipping below $90 per barrel overnight.
Preliminary data from shipping analytics firm Kpler shows only five commodity vessels transited the Strait of Hormuz on Tuesday, well below the 15-ship daily average recorded over the previous ten days. Before the conflict involving Iran erupted, roughly one-fifth of global crude oil trade moved through the strait.
The joint statement from Iran and Oman also indicated that both sides will continue technical-level negotiations, with the goal of finalizing a permanent navigation channel, determining the strait's future governance structure, and establishing operational mechanisms for information sharing, traffic control, and the provision of navigational and safety support services.
Oil prices have fallen sharply this week. Another factor suppressing prices is that the United States has reportedly begun repositioning diplomatic personnel back to Gulf nations, suggesting Washington is not currently seeking military escalation. Russia's RIA news agency, citing Iranian and Pakistani sources Tuesday evening, reported that the US and Iran will announce a new ceasefire agreement in the coming days, which would include provisions for freedom of navigation through the Strait of Hormuz. However, that claim could not be independently verified, and the White House did not respond to requests for comment.
Earlier, US Treasury Secretary Scott Bessent announced Monday an "Economic D-Day" campaign against the Iranian regime, threatening to target Iran's "enablers" and trading partners in an effort to cripple the country's economy. Washington also published a sanctions list naming 60 individuals, entities, and vessels.
Yet so far, the United States has not imposed large-scale secondary sanctions on other nations.
Bessent said Monday: "Why would I bring down the entire global financial system? We believe in setting up a buffer and giving everyone an adjustment window. But they need to understand that things can change very quickly, and we are serious."