Iran and Oman Near Agreement on Hormuz Route... 'US Compensation' as a Variable

[Mexico City = Shim Young-jae, Correspondent] Iran and Oman are close to reaching a final agreement in negotiations to establish a new route through the Strait of Hormuz. However, Iran has set conditions that the US must compensate for the damages caused by attacks and cease sanctions and military threats in order to reopen the strait. The Strait of Hormuz is a key energy transport route through which about one-fifth of the world's crude oil and liquefied natural gas (LNG) passed before the conflict.

According to Reuters on the 10th (local time), Ismail Baghaei, spokesperson for the Iranian Foreign Ministry, stated that the navigation negotiations with Oman are "proceeding smoothly and constructively." While both sides have agreed on a navigation route map for vessels, some technical issues in the joint statement have yet to be resolved. Iran is not negotiating directly with the US and is exchanging messages through intermediaries.

Agreement on Iran-Oman Route Map

Negotiations between Iran and Oman for the reopening of the Strait of Hormuz are nearing completion.

According to Reuters, spokesperson Baghaei stated at a regular press conference held in Tehran on the 10th that the navigation negotiations with Oman are proceeding smoothly and constructively.

The two countries have agreed on a new route map for vessels passing through the Strait of Hormuz. However, some technical details to be included in the joint statement are still being coordinated.

The negotiations also discussed measures for safe vessel navigation, environmental protection, maritime services, and responses to crime.

Spokesperson Baghaei explained that such services typically involve compensation. Iranian Foreign Minister Abbas Araghchi also mentioned on the 9th that the agreement with Oman is in the "final stage."

However, the agreement on the route with Oman does not immediately mean a full reopening of the Strait of Hormuz.

Minister Araghchi reaffirmed that Iran would not reopen the strait if the US does not meet the demands presented by Iran.

"US Must Compensate for Attack Damages"

One of the key conditions Iran is demanding from the US is compensation for damages.

According to Reuters, Minister Araghchi stated that compensating for the damages caused by extensive attacks on Iran is one of the conditions for reopening the strait.

Mohammad Bagher Zolghadr, Secretary of Iran's Supreme National Security Council, also presented additional conditions.

He stated that the US must cease additional threats against Iran and stop attacks on allied forces in Lebanon, Palestine, Yemen, and Iraq. He also demanded the withdrawal of the maritime blockade imposed by the US in the Gulf region. The lifting of sanctions against Iran and the return of frozen Iranian assets are also included in the conditions.

Iran and the US are currently not negotiating directly.

Minister Araghchi stated that he would not begin direct negotiations while the US is violating the temporary agreement signed in June. However, he mentioned that message exchanges through intermediaries are ongoing.

Trump: "Halfway Negotiating"

US President Donald Trump also mentioned the negotiation situation with Iran. According to Reuters, President Trump stated in an interview with Axios that the US is handling the situation with Iran "at a low intensity."

President Trump said, "We are halfway negotiating with them," adding, "We are just watching Iran, which is facing massive inflation and has no money."

The US and Iran agreed to a ceasefire in June. However, tensions continued as the US reinstated the blockade on Iranian vessels in the Gulf region last month.

Iran claimed that the US's resumption of the blockade violated the ceasefire agreement. Reuters reported that the ceasefire itself had already effectively collapsed at that time.

On the US side, a plan was proposed to link the lifting of the maritime blockade with Iran's reopening of the Strait of Hormuz.

According to Reuters, an anonymous US official stated on the 7th that "if an agreement is announced to restore the unhindered operation of commercial vessels, the US will lift the blockade on Iranian ports." He explained that the US's actions would be linked to Iran fulfilling its promises.

Reuters assessed that such statements indicate that negotiations regarding the order of agreement implementation are being conducted sensitively.

Hormuz: A Key to Global Energy Logistics

The Strait of Hormuz is a key transport route for the global energy market. Since the US and Israel's attack on Iran on February 28, the strait has been effectively blocked.

Before the conflict, about one-fifth of the world's crude oil and LNG passed through the Strait of Hormuz. Disruptions in the strait's operations have led to increases in international oil prices and inflation.

According to Reuters, the international oil benchmark Brent crude rose to about $126 per barrel at the end of April, the highest level since 2022.

Although negotiations for the reopening of the Hormuz are progressing, Iran's multiple conditions for the US have led to a slight increase in oil prices, which recorded $84.22 per barrel on the 10th.

The expectations for the reopening of the strait and the political uncertainties remaining until an agreement are reflected in the prices.

Possibility of Iran Managing Vessel Traffic

Issues surrounding the operation of the Strait of Hormuz also remain.

According to multiple sources cited by Reuters, the discussed agreement may involve Iran managing the traffic of vessels entering the Gulf region. However, the shipping industry has pointed out that such a method may be difficult to implement in actual operations.

Iran and Oman are discussing a navigation system that includes safe navigation, environmental protection, maritime services, and crime response.

With an agreement on the route itself reached, the key moving forward will be how the US and Iran implement the measures they each demand in what order.

Continued Houthi Attacks in the Red Sea

Tensions are also ongoing in major maritime transport routes on the opposite side of the Arabian Peninsula, not just in the Strait of Hormuz.

According to Reuters, alongside Iran's attacks on vessels in the Strait of Hormuz, the Iranian-linked Houthi rebels in Yemen are also attacking vessels between the Red Sea and the Gulf of Aden.

The Houthis declared a maritime blockade against Saudi Arabia in the Red Sea last month.

The Houthis claim that Saudi Arabia is surrounding them in Yemen. Saudi Arabia denies this.

Saudi Arabia supports the internationally recognized Yemeni government.

Fighting between the Houthi rebels and Yemeni government forces has also intensified. According to Reuters, Yemeni forces reported that seven people, including soldiers and civilians, were killed in a Houthi attack on the Red Sea port city of Mocha on the 10th.

The Yemeni military explained that they intercepted 11 Houthi drones mobilized for the attack with their air defense system.

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