Iran: Near Deal with Oman on Strait of Hormuz Reopening, Demands US Compensation

Iran announced it is nearing an agreement with Oman to reopen the Strait of Hormuz, a critical maritime chokepoint. However, Iranian Foreign Minister Abbas Araghchi stressed that the US must first provide compensation for violating a previous memorandum of understanding (MOU) for the reopening to proceed fully.

Araghchi stated that negotiations between Iran and Oman regarding the strait's reopening are "very close to an agreement." He emphasized that Iran's demands, including compensation for the US breach of the Islamabad MOU, must be met. The proposed operational methods for the strait are also expected to change, as Araghchi indicated the current traffic separation scheme (TSS) is no longer suitable for Iran's maritime traffic needs, necessitating a new TSS.

Military authorities from Iran and Oman are currently discussing the specifics of new temporary shipping lanes. Until a final agreement is reached, existing routes will continue to manage vessel traffic. Araghchi explained that the original plan was to restore traffic to pre-war levels within a month under the Islamabad MOU. While traffic recovered to 60% of normal levels two weeks after the agreement, he claimed the US's attempts to establish new routes caused disruptions.

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The negotiations between Iran and Oman regarding the reopening of the Strait of Hormuz have come very close to an agreement.

According to reports, the potential agreement includes a plan where vessels entering the Persian Gulf would use Iranian-controlled lanes, while those exiting would use Omani lanes. Discussions also cover imposing service fees for navigation and environmental management. The US has reportedly opposed Iran gaining control over the strait or levying such fees.

The Islamabad MOU, established in June between the US and Iran, stipulated a phased lifting of maritime blockades by the US and Iran's guarantee of safe passage for merchant ships through the Strait of Hormuz. It also included provisions for Iran and Oman to coordinate the strait's management and maritime services. However, tensions quickly resurfaced. A ceasefire established in April was broken within days, leading to US blockades of southern Iranian ports. Subsequent exchanges of attacks and renewed blockades rendered the MOU largely ineffective within a month.

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The existing traffic separation scheme is no longer suitable for ship traffic from Iran's perspective.