Iran and Oman are moving closer to an arrangement aimed at restoring safer commercial navigation through the Strait of Hormuz, as diplomatic efforts gather pace around the strategic waterway and tensions between Tehran and Washington show signs of shifting towards negotiations.
The proposed framework was discussed by the two countries’ foreign ministers and includes plans for a temporary joint navigational corridor through the strait. Tehran and Muscat are also considering a joint operation to clear mines from the shipping route.
In a joint statement issued on Tuesday, the two countries said technical discussions would continue towards establishing a permanent navigational corridor and determining how the waterway would be administered in the longer term.
The proposed arrangement is expected to cover information sharing, vessel traffic management, as well as navigational and security services. If implemented, it could provide a framework for gradually restoring commercial traffic through one of the world's most important energy chokepoints.
The diplomatic development has also eased some pressure in oil markets. Brent crude extended its recent decline and fell below $90 a barrel overnight. Brent was trading at $86.52 a barrel, down 2.06%, or $2.33, as of 8:17 a.m. BST on Wednesday.
Despite the improvement in diplomatic prospects, shipping activity through Hormuz remains substantially below normal. Preliminary Kpler data showed that only five commodity vessels crossed the waterway on Tuesday, compared with a 10-day average of 15 vessels.
The scale of the disruption remains significant because roughly one-fifth of global crude oil supplies typically move through the Strait of Hormuz. A sustained restriction on shipping through the waterway therefore carries implications for crude supply, tanker movements and global energy prices.
The Iran-Oman discussions come as Washington appears to be placing greater emphasis on economic pressure against Tehran while seeking to avoid an immediate expansion of military confrontation.
The United States has reportedly started returning diplomats to Gulf states, a development that could indicate Washington does not currently expect an immediate escalation in hostilities.
Russia’s RIA Novosti also reported on Tuesday that the United States and Iran could announce another ceasefire arrangement in the coming days, citing Iranian and Pakistani sources. The report, which was not independently verified, said such an agreement could include provisions for freedom of navigation through Hormuz.
The White House had not immediately commented on the report.
The diplomatic activity follows US Treasury Secretary Scott Bessent’s warning on Monday that Washington would launch an “economic D-Day” against the Iranian government.
Bessent said the latest sanctions campaign would target individuals, companies and vessels accused of helping Iran circumvent economic restrictions. The administration identified 60 targets in the new measures.
Washington has, however, so far stopped short of imposing major secondary sanctions on countries and financial institutions facilitating Iran’s oil trade, including Chinese companies suspected of supporting Iranian crude exports.
Bessent said the administration intended to give affected businesses time to adjust before intensifying enforcement.
The approach reflects Washington’s attempt to increase pressure on Tehran without triggering wider disruption to the international financial system.
China, which purchases about 90% of Iran’s oil, has already warned against any expansion of US sanctions targeting countries trading with Tehran.
A Chinese foreign ministry spokesperson said Beijing would take measures to protect its rights and interests if Washington broadened its sanctions campaign.
Against this backdrop, the proposed Iran-Oman framework could become an important diplomatic mechanism for restoring regular commercial traffic through Hormuz.
Its immediate significance lies not only in the possibility of reopening the shipping route but also in establishing a system for traffic management, information exchange, navigation and security while wider negotiations over the future of the waterway continue.
For oil markets, a sustained improvement in navigation through Hormuz could reduce the supply risk premium that has accompanied the disruption. However, the sharply reduced vessel traffic shows that normal commercial flows have yet to be restored.