Iran says talks with Oman over Hormuz progressing

Negotiations between Oman and Iran over future control over the Strait of Hormuz are making significant progress, Iran’s foreign ministry announced on Tuesday, as Washington touts an incoming deal to reopen the waterway.

Foreign ministry spokesperson Esmaeil Baghaei told state-run media that the discussions are both political and technical and are focused on determining “safe inbound and outbound routes for vessels.”

He added that there have been positive developments in the talks over the past few days and that both countries would announce details once negotiations conclude.

Iran has been engaged in discussions with Omani officials since last month as part of the provisions of the now-defunct Islamabad Memorandum of Understanding. The agreement said that both countries would “enter a dialogue” to “define the future administration and maritime services in the Strait of Hormuz.”

Iran closed the Strait of Hormuz in early March, after the U.S. and Israel launched joint strikes on political and military targets in Iran. While traffic inched closer to pre-war levels after the signing of the memorandum of understanding in June, renewed fighting has again strangled shipping in the region.

At least a fifth of the world’s oil and natural gas supply travels through the strait annually, and its closure has driven up energy prices globally. Brent crude oil dropped to from $85 to $79 a barrel on Tuesday as news of a possible deal to reopen the strait broke.

Reports from the region indicate that the incoming deal could establish joint control over the waterway, with ships entering the strait through Iranian waters and leaving through Omani waters.

Iranian officials have also insisted that any framework agreement for control over the strait would include fees, in the form of service charges imposed on commercial vessels traveling through the waterway.

The U.S. and its allies have insisted for months that any deal allowing Iran to impose fees on commercial ships traveling in the Strait of Hormuz would be unacceptable

Notably, Iranian officials have insisted that they are not negotiating with the U.S., contrary to statements made by President Trump, who said earlier this week that both countries were approaching a deal to open the strait and end the war.