Iran and Oman advance Hormuz shipping corridor plan

Iran and Oman have moved towards a temporary arrangement to restore safer commercial shipping through the Strait of Hormuz, proposing a jointly managed navigation corridor and mine-clearing operation while negotiations continue on a permanent system for the strategic waterway.

Foreign Minister Abbas Araghchi and his Omani counterpart Badr Albusaidi discussed the phased framework during talks in Tehran on Tuesday, August 25. The proposal is designed to provide an immediately workable mechanism for vessels while broader technical and political issues remain unresolved.

The framework envisages a temporary joint navigational corridor through the strait alongside a project to remove mines and other hazards affecting commercial traffic. Technical teams are expected to continue negotiations on a permanent corridor, administration of the waterway, information-sharing, vessel traffic management and maritime security services.

Albusaidi said he was hopeful that a temporary corridor could be announced soon. Tehran has indicated that talks on longer-term arrangements could continue for another 30 to 60 days as negotiators attempt to reconcile competing positions over jurisdiction and management of the shipping lanes.

Under the plan being discussed, vessels entering the Gulf from the Gulf of Oman would use a route entirely through Iranian waters, while outbound traffic would pass through Iranian and Omani waters. The configuration represents an attempt to establish a practical operating system without settling the politically sensitive question of permanent control over navigation.

The talks have become increasingly important because shipping through Hormuz remains far below normal levels. Only five commodity vessels transited the strait on Tuesday, compared with a 10-day average of about 15. Four vessels passed through on Monday. Tracking figures can understate movements because ships operating in high-risk waters sometimes switch off their transponders.

Hormuz is one of the world’s most important energy chokepoints. Oil flows through the strait averaged about 20.9 million barrels a day in the first half of 2025, equivalent to roughly one-fifth of global petroleum liquids consumption. More than 20 per cent of global liquefied natural gas trade also used the passage, with Qatar supplying most of those cargoes.

The present negotiations grew out of the 14-point memorandum of understanding reached between Washington and Tehran in June. That arrangement provided for commercial vessels to receive safe passage without charge for 60 days and called for Iran to discuss the future administration and maritime services of Hormuz with Oman and other Gulf states. It also envisaged mine clearance and the gradual restoration of normal traffic.

Implementation became entangled in the wider breakdown of US-Iran understandings. Tehran and Washington have accused each other of failing to meet commitments under the June arrangement, while disagreements persist over sanctions, the naval presence around Iran and the terms for a broader settlement.

Iran maintains that fully normalised shipping cannot be separated from the removal of US economic restrictions and measures affecting its maritime trade. Washington has continued increasing pressure on Tehran while insisting that navigation through an international waterway cannot be subjected to conditions unacceptable to other users.

Security risks have meanwhile remained visible. A tanker operating near Oman was disabled after being struck by a projectile, reinforcing concern among shipowners and insurers about sending vessels through the area even if portions of established shipping lanes have been cleared of mines.

US President Donald Trump said on Tuesday that mines had been removed from the main shipping lane, following a months-long clearance operation. Two US officials confirmed that mines had been cleared from the Traffic Separation Scheme used by commercial vessels. Iran and Oman are nevertheless pursuing their own mine-clearance and navigation arrangements as part of the proposed framework.

Oil markets reacted positively to signs of diplomatic movement. Brent crude settled at $88.58 a barrel on Tuesday after dropping more than 3 per cent, while West Texas Intermediate finished at $82.36. Expectations that economic pressure rather than expanded military confrontation could dominate the next phase helped ease fears of another major disruption to Gulf supplies.