Iran says Oman Hormuz deal near but demands US action first
Thestandard · 2 SOURCESabout 3 hours ago3 MIN
Summary
Iranian Foreign Minister Abbas Araqchi said on Sunday that a deal with Oman defining new shipping lanes in the Strait of Hormuz was in its "final stages," but reiterated that the waterway would only reopen once the United States met other unspecified conditions . The strait, which lies between Iran and Oman, carried a fifth of global oil and liquefied natural gas shipments before Iran blocked it in response to U.S. and Israeli attacks . A U.S. official told Reuters on Friday that an agreement between Iran and Oman was close and could soon reopen the waterway, adding that "once the deal is announced to restore commercial shipping without impediments, the United States will lift the blockade of Iranian ports" . However, U.S. actions would be tied to Iran's implementation of its commitments, the official said .
Key Points
- Iranian Foreign Minister Abbas Araqchi confirmed the Oman deal was in "final stages" but said the strait would not reopen unless other conditions were met .
- The agreement would establish new shipping lanes to be used once the U.S. fulfills conditions and the strait reopens, according to Iran's Mehr news agency .
- Iran and the U.S. are not engaged in direct talks, and Tehran will not start them as long as Washington breaches an interim deal signed in June, Araqchi stated .
- Messages between Iran and the U.S. are being exchanged via intermediaries rather than through formal negotiations .
- U.S. President Donald Trump told Axios the U.S. was "low-keying" it with Iran, saying "we are only semi-negotiating with them" while pointing to Iran's inflation and economic troubles .
- The United States began air strikes on Iran in late February, saying it aimed to prevent Iran from acquiring nuclear weapons or threatening the region .
- A June ceasefire was followed by a U.S. reimposed blockade on Iranian shipping in July, which Tehran said violated the already broken-down truce .
- The U.S. comments indicated delicate sequencing towards a deal that sources said appeared set to give Tehran control over ships entering the Gulf, something shippers said was not easily workable .
Why It Matters
The Strait of Hormuz handles approximately 20 percent of global oil and LNG shipments, making its closure a significant threat to international energy markets and prices that affect Hong Kong's fuel costs and inflation . Any prolonged disruption or complex Iranian control over vessel traffic could increase shipping insurance premiums and delay cargo, directly impacting Hong Kong's port-dependent trade economy and consumer prices for energy-intensive goods .
The Strait of Hormuz handles approximately 20 percent of global oil and LNG shipments, making its closure a significant threat to international energy markets and prices that affect Hong Kong's fuel costs and inflation . Any prolonged disruption or complex Iranian control over vessel traffic could increase shipping insurance premiums and delay cargo, directly impacting Hong Kong's port-dependent trade economy and consumer prices for energy-intensive goods .