The United States and Iran are closing in on an agreement to reopen the Strait of Hormuz to regular commercial shipping. Iranian Foreign Ministry spokesman Esmaeil Baghaei said discussions with Oman have reached the “final stage,” with preliminary agreements on shipping lane coordinates already in place. President Donald Trump expects a deal could be finalized by mid-week.
Shipping Disruption
The disruption to shipping in the strait has been significant, with commercial vessel traffic collapsing from 130 ships per day to just eight since February. This has had a major impact on global energy markets, with roughly 20% of the world’s oil supply previously flowing through the strait.
Negotiations
The current negotiations trace back to a memorandum of understanding signed on June 17, 2026, which proposed a temporary 60-day toll-free reopening of the strait. The route arrangements under discussion would split responsibilities between Iran and Oman, with both countries sharing maritime security duties.
Implications
A deal would presumably involve lifting or easing the US naval blockade on Iranian ports. Even a temporary reopening of the strait would provide significant relief to global energy markets, easing supply pressures and potentially putting downward pressure on oil prices.
