The US, Iran, and Oman are reportedly nearing an interim agreement to reopen the Strait of Hormuz, according to Axios, citing two regional sources and a US official. The announcement could come as early as Wednesday.
Background of the Conflict
The critical waterway has been a contentious issue in the US-Iran war. The US and Israel carried out joint strikes on several key Iranian sites on February 28, and Iran retaliated by striking sites across the Middle East and closing the strait.
About 20% of all global oil traded passed through the Strait of Hormuz prior to the conflict, but its closure has choked the flow of oil out of the Middle East, caused volatility in global markets, and driven up fuel prices at the pumps.
Failed Ceasefire Efforts
The US and Iran signed a Memorandum of Understanding (MoU) on June 17 to bring the war to a close within 60 days. Washington and Tehran were working towards securing a lasting peace agreement, restoring international shipping through the Strait of Hormuz, and settling an ongoing dispute over Tehran's nuclear programme.
However, the agreement was short-lived, and conflict resumed not even one month after the MoU was signed.
Details of the Interim Deal
The Axios-reported interim agreement has been under negotiations for several weeks. It is aimed at resuming the ceasefire between the US and Iran and restarting negotiations over a nuclear deal.
Axios reports that the potential "deal would meet some of Iran's demands for greater control over traffic in the Strait of Hormuz - control it didn't have before the war." The deal being discussed will enable a 60-day temporary arrangement between Oman and Iran in the strait, which could be extended, according to the sources.
Key Points of the Deal
- All inbound traffic of ships through the strait and into the Gulf would go in a northern lane through Iranian waters.
- All outbound traffic through the strait and into the Arabian Sea would go in a southern lane through Omani waters, in coordination with Iran.
- No tolls or fees would be charged during the 60-day period.
- The parties would work on clearing naval mines from the median lane of the strait within 30 days.
- After the median lane is cleared, it would be used for inbound and outbound traffic under the terms of a permanent arrangement to be negotiated between Oman and Iran.
Trump's Ultimatum
US President Donald Trump decided not to follow through on threats of a massive bombing campaign to provide more time for diplomacy. If a deal is not reached soon, however, Trump could green-light major strikes.
Speaking to Fox News, Mr Trump said: "The Strait is going to be open very soon - or they're gonna hit very hard, and then the Strait is going to be open."
