Iran and Oman Finalize New Strait of Hormuz Shipping Route: Here's What Oil Markets Are Watching

Strait of Hormuz, MMN Correspondent: A major step is taking shape in one of the world's most important maritime corridors. Iran has announced that a shipping route agreement with Oman for the Strait of Hormuz is in its final stages. The announcement comes as global markets watch closely for signs of stability in a region that has seen months of disruption.

What makes the strait so important? This narrow waterway between the Persian Gulf and the Gulf of Oman carries roughly one-fifth of the world's oil and liquefied natural gas every day. That makes it a critical artery for energy supplies, especially for Asia and Europe.

Iran's Foreign Ministry spokesman Esmaeil Baqaei confirmed that the geographical coordinates of the route have been agreed with Oman. He did not share specific details. He also noted that safe navigation depends on more than this agreement. In his words through Irna news agency, "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."

Deputy Foreign Minister Kazem Gharibabadi later added that the route could be temporary, staying open for two to four months. The exact terms and conditions have not been made public. The United States and Oman have not yet responded to the proposal, and the White House has not clarified its position.

This development comes after a strong public statement from President Donald Trump. He said Iran would be "hit very hard" if the strait did not reopen "very soon." Around the same time, senior US officials reported that diplomatic talks have progressed and shipments could resume later this week. Iran, for its part, has consistently said it is not negotiating with the United States.

The broader situation dates to 28 February, when the United States and Israel launched wide-ranging strikes on Iran. The attacks killed Iran's then-Supreme Leader Ayatollah Ali Khamenei. His son Mojtaba Khamenei was named as his successor. Mojtaba was wounded in the same strikes and has not appeared in public since. His absence has led to speculation about his health and his role in decision making. President Masoud Pezeshkian has said that communication with him is possible. He described the current situation as "difficult at the moment."

In June, Iran and the United States signed a memorandum of understanding aimed at ending the fighting and reopening the Strait of Hormuz within 60 days. That process did not hold, and mutual attacks began again within days. The new arrangement with Oman could be seen as another attempt to create a practical pathway forward.

One of the key sticking points is money. A senior Iranian official told Reuters that Iran is seeking fees of between 5% and 7% of cargo value. Oman is reportedly discussing around 3%. Washington is insisting that no fees should be imposed. The proposed agreement would also give Tehran control over ships entering the Gulf through the strait. That condition is likely to draw strong international scrutiny.

There is also the wider maritime situation. Yemen's Iran-backed Houthi group has limited Saudi Arabia's Red Sea ports since 20 July. They have also attacked vessels in the Red Sea and the Gulf of Aden. These actions have added another layer of complexity to global shipping routes and have drawn international naval responses.

The announcement has already made a noticeable impact. Brent crude has been trading near $79 a barrel, and the news helped push prices slightly lower in Asian trade. Analysts remain careful, knowing that negotiations can shift quickly.

The benefits of reopening the route go beyond oil and gas. A functioning Strait of Hormuz supports the delivery of food, medicine, and essential goods to communities across the region. Restoring this flow is a meaningful opportunity for greater security and cooperation.

What happens next depends on how all sides respond to the details. Oman has long acted as a bridge between Iran and the West, and this role is more valuable than ever. If the agreement moves ahead, it could serve as a confidence-building step in a region that needs practical solutions.

The world is watching this final stage closely. A reopened Strait of Hormuz would be a welcome development for energy markets, regional economies, and the millions of people who depend on the goods that pass through this vital waterway.