Iran says Hormuz talks with Oman in 'final' stages as route approved

Final-stage talks

Iran announced on Wednesday that negotiations with Oman to reopen the Strait of Hormuz are in their 'final' stages, with a route for the waterway already approved. The statement marks a significant step toward easing one of the world's most critical maritime chokepoints, through which roughly a fifth of global oil supplies pass.

Officials in Tehran have not disclosed a timeline for signing the agreement, but described the talks as near completion. The development follows weeks of diplomatic exchanges between the two Gulf neighbours, with Omani mediators playing a key role in bridging differences.

No fees or tolls

A key component of the proposed deal is that passage through the strait would involve no fees or tolls, according to reports. This would apply to commercial shipping, which has faced disruptions and heightened risks in recent months due to regional hostilities.

The approved route is expected to allow for smoother transit, though specific navigational details have not been made public. Analysts say the absence of tolls could help stabilise shipping costs, which have spiked as insurers raised premiums for vessels entering the area.

Barring 'hostile' vessels

Separately, Iran has floated a proposal to bar 'hostile' vessels from using the strait, a move that has drawn attention from global markets. The suggestion, reported by Reuters, is seen as part of Tehran's broader strategy to assert control over the waterway while presenting a diplomatic opening.

The proposal has not been formally adopted, and its implications for naval traffic remain unclear. However, the mere possibility has added a layer of uncertainty for shippers and insurers operating in the region.

Market reactions

Oil prices edged higher on Tuesday following reports of Iran's plan, while gold pared its gains, reflecting a mixed investor mood. The prospect of a reopened strait could ease supply concerns, but the 'hostile vessel' proposal has kept tensions alive.

Brent crude and West Texas Intermediate both rose modestly in early trading, though gains were limited as traders weighed the likelihood of a final agreement. Gold, which had rallied on safe-haven demand, gave back some ground as risk appetite improved slightly.

Regional context

The talks come amid broader regional turbulence. Earlier this week, US President Donald Trump said the war in the region would end 'pretty soon', though he did not provide specifics. The conflict has disrupted shipping in the Gulf, with several vessels targeted and rerouted in recent months.

Oman, a long-time mediator in the region, has maintained channels with both Iran and Western nations, positioning itself as a neutral broker. Its role in the Hormuz talks has been widely praised, with diplomats noting that the sultanate's quiet diplomacy has helped keep negotiations on track.

What's next

With talks in the final stages, attention now shifts to the formal signing of the agreement and the implementation of the approved route. Observers will watch for details on how the 'hostile vessel' clause, if included, would be enforced and whether it could complicate the deal.

The coming weeks are likely to see further diplomatic movement, with Oman expected to host a signing ceremony. For global markets, the key question is whether the reopening proceeds smoothly or gets entangled in broader geopolitical disputes.