Iran-Oman Talks Focused on Restarting Hormuz Shipping Traffic

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(Bloomberg) — Negotiators from Iran and Oman are trying to reach an agreement to restart shipping through the Strait of Hormuz, according to people familiar with the matter.

Financial Post

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Iran and Oman, whose territories border the strait, are continuing discussions after their officials met in Tehran over the weekend, the people said, asking not to be identified talking about sensitive matters. A successful deal would then enable the Islamic Republic and the US to resume talks over ending their war, they said.  

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One proposal is to reopen the strait’s so-called middle passage, said two of the people. That has largely been avoided by ships since the start of the conflict in late February, with vessels taking either a northern route close to Iran’s shores or a southern one that passes near the Omani exclave of Musandam.

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Omani negotiators are optimistic they’ll be able to make an announcement signaling progress in the next few days, the people said, adding there’s no guarantee that will happen.

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US President Donald Trump told Axios on Monday that “deep talks” are taking place, though he didn’t specify if they are about the Strait of Hormuz. The discussions are mainly between Iran and Oman, Axios reported, with Qatar, Pakistan, Egypt and Trump’s envoys, Steve Witkoff and Jared Kushner, also involved. 

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The middle passage likely contains sea mines placed by Iran, according to the people, and could have to be cleared before vessels use it on a regular basis. The UK, France and other European nations have said they can lead de-mining efforts, but only once it’s safe to do so.

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US Defense Secretary Pete Hegseth is pushing his UK counterpart, Wes Streeting, to host a summit about protecting maritime traffic in the Strait of Hormuz soon.

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Oman’s foreign ministry didn’t immediately respond to a request for comment.

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Traffic through the Strait of Hormuz has become the biggest obstacle to peace talks between the US and Iran. An interim deal they signed in mid-June — meant to kickstart talks over the Islamic Republic’s nuclear program and lead to a permanent cessation of hostilities — collapsed around three weeks ago. That was after Iran attacked tankers sailing through Hormuz, insisting they needed its permission first, and the US retaliated by launching daily airstrikes on Iranian territory.

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The two sides have paused their skirmishes since Friday, with Trump saying he wants to give diplomacy a chance.

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Despite the lull, hardly any ships are moving through the Hormuz strait, at least with their locator devices turned on. That’s helped push up energy prices because of the waterway’s importance as a conduit for flows of oil and liquefied natural gas.

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Since a ceasefire in April, some ships going through the strait obtained permission from Iran and took the northern route. Most others used the southern path, turning off their transponders to avoid detection by Iran and getting assistance from the US military.

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Tehran has said since the war erupted — with US-Israeli strikes on Iran — that it will manage shipping in and around Hormuz, something the US and its allies have pushed back against. Iran is trying to get Oman to agree to a joint management system, which would probably include fees of some kind for vessels.

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