Why the US, Iran and Oman are discussing a deal to reopen the Strait of Hormuz

The United States, Iran and Oman are reportedly close to an interim agreement aimed at restoring commercial shipping through the Strait of Hormuz after months of disruption linked to the conflict involving the United States, Israel and Iran.

The proposed arrangement, if finalised, would seek to revive a 17 June ceasefire framework, reduce risks to global energy supplies and create space for broader diplomatic negotiations, says Al Jazeera.

Here is what is known about the proposed agreement and what challenges remain.

Why is the Strait of Hormuz important?

The Strait of Hormuz is one of the world's most important maritime chokepoints, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea.

A significant share of the world's seaborne crude oil and liquefied natural gas exports passes through the narrow waterway, making any disruption a concern for global energy markets, shipping companies and importing countries.

Recent conflict has sharply reduced commercial traffic through the strait, raising concerns about energy supplies and shipping costs.

What is being proposed?

Negotiations, mediated primarily by Oman, have focused on a temporary 60-day arrangement to allow commercial shipping to resume while broader political issues remain under discussion.

The proposal includes several elements:

Ships entering the Persian Gulf would use a northern navigation lane through Iranian waters.

Ships leaving the Gulf would use a southern lane through Omani waters.

Instead of mandatory transit tolls, negotiators are discussing voluntary service fees that would help fund maritime security, environmental protection and navigational assistance, similar to arrangements used in the Strait of Malacca.

The agreement could also include clearing naval mines from the central part of the strait to improve navigational safety.

The temporary arrangement is intended to restore shipping while negotiators work towards a longer-term framework.

Why are the parties interested in a deal?

The proposed agreement reflects different priorities for each side.

For the United States, restoring shipping through the strait could help reduce pressure on global oil markets and ease domestic fuel prices. Reports also suggest the administration is seeking to avoid further military strain as the conflict continues.

Iran has emphasised its role as a coastal state bordering the strait and has argued that it should retain a role in managing navigation alongside Oman. Iranian officials have denied engaging in direct negotiations with Washington.

Oman has continued its traditional role as a regional mediator, seeking to facilitate an arrangement acceptable to both sides.

Control of shipping lanes

Several issues remain unresolved.

Washington argues that no country should control access to the shipping lanes or require vessels to obtain Tehran's approval before transiting the waterway.

Iran, however, seeks to maintain regulatory authority over waters adjacent to its coastline and supports joint management of the strait with Oman.

US sanctions

Even if shipping resumes, US sanctions could complicate implementation.

Shipping companies may be unable to coordinate with or make payments to Iranian authorities unless Washington issues exemptions or other authorisations.

Long-term governance

Negotiators have yet to agree on how the strait would be administered after the proposed 60-day interim period expires.

Why does this matter for global markets?

Commercial shipping through the Strait of Hormuz has reportedly fallen sharply during the conflict, increasing concerns about disruptions to global oil supplies.

A reopening of the waterway could help restore confidence in energy markets, reduce shipping risks and improve the movement of oil and other commodities.

However, market participants are likely to watch closely for signs that any agreement is being implemented successfully before assuming disruptions have ended.

Would a Hormuz agreement resolve the wider conflict?

No.

The reported proposal is designed primarily to restore navigation through the Strait of Hormuz and reinforce the June ceasefire framework.

Broader regional issues—including Iran's nuclear programme, the conflict involving Israel and Hezbollah in Lebanon, and Houthi attacks affecting shipping in the Red Sea—would remain unresolved.

As a result, any agreement would likely be viewed as a limited confidence-building measure rather than a comprehensive settlement of the wider regional tensions.