Hormuz Deal Nears, But Iran Insists on Broader U.S. Agreement for Reopening Waterway

Iran and Oman are nearing an agreement to manage the strategic Strait of Hormuz, but Tehran stated Saturday that a deal would be insufficient to reopen the vital waterway on its own, demanding further concessions from the United States. The diplomatic progress comes amid ongoing hostilities, as the United Arab Emirates reported another Iranian missile attack on a commercial vessel in the strait.

Diplomatic Overtures and Demands

Iranian Foreign Minister Abbas Araqchi said that Iran and Oman were "very close" to an agreement on a new shipping route, according to a Reuters report. He added, however, that the previous traffic separation scheme was no longer acceptable and that a full reopening is contingent on other conditions, including U.S. compensation to Iran.

A U.S. official, speaking on condition of anonymity, told Reuters on Friday that Washington anticipates a deal soon. The official stated that the U.S. would lift its blockade of Iranian ports "once the deal is announced to restore commercial shipping without impediments," adding that U.S. actions would be tied to Iran's implementation of its commitments.

Separately, Iran’s Revolutionary Guards said that reopening the strait depends on Washington accepting unspecified conditions. "Whenever the United States accepts Iran’s conditions, the Strait of Hormuz will certainly be reopened," spokesperson Hossein Mohebbi said, according to Iran’s Tasnim news agency.

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Market Impact and Regional Tensions

The Strait of Hormuz is a critical chokepoint for global energy markets, previously handling a fifth of the world’s oil and gas shipments. The conflict, which began with U.S. and Israeli attacks on Iran on February 28, has severely disrupted global shipping, causing energy prices to surge and contributing to inflation.

Iran has responded to the attacks by targeting U.S. bases and commercial shipping. The UAE said Saturday that an oil carrier affiliated with its state energy firm, Abu Dhabi National Oil Company (ADNOC), was struck by an Iranian missile while transiting the strait. ADNOC reported Friday that 15 of its vessels have been attacked since the conflict began, resulting in one death and 20 injuries.

Earlier reports from regional sources suggested a potential deal could grant Tehran control over ships entering the Gulf, a significant concession that U.S. officials have previously said they would not accept. The ongoing uncertainty and continued attacks highlight the significant geopolitical risk premium affecting oil markets.