Oman Brokers Hormuz Framework as Iran and U.S. Near Shipping Deal

MUSCAT, Oman has agreed to the framework of a deal with Iran to temporarily reopen the Strait of Hormuz, two Middle East diplomats with knowledge of the negotiations told MS NOW on Thursday, the clearest sign yet that five months of war and blockade in the Gulf may be edging toward a pause.

The proposed arrangement is narrower than anything Washington had originally demanded. According to two regional sources cited by Axios, the deal under discussion sets up a 60-day temporary arrangement between Oman and Iran in the Hormuz strait, which could be extended. Under those terms, all inbound traffic would use a northern lane through Iranian waters; all outbound traffic would run through a southern lane coordinated by Oman. Naval mines in the median lane would be cleared within 30 days, after which that lane would become the subject of a permanent arrangement to be negotiated separately.

Iran said Wednesday it was in the "final stage" of drafting an agreement with Oman, as AP reported from Cairo. The same day, U.S. Treasury Secretary Scott Bessent told CNBC that a deal with Iran could be imminent, according to reporting by The Washington Post. President Trump, for his part, said a deal "could happen" as soon as Wednesday or Thursday.

But the gaps between the two sides remain real. Tehran continues to deny holding direct talks with Washington; its officials have insisted that discussions are taking place only with Oman over how to manage the strait, as Al Jazeera reported. Iran's position is that it controls the terms. "The decision-maker regarding the Strait of Hormuz is the Islamic Republic of Iran," an Iranian spokesman said, according to CBS News. "If it accepts Iran's conditions, an agreement will be reached."

The sticking point that has sunk previous efforts is sovereignty. The Trump administration has previously ruled out any deal that would cement Iran's grip over the strait, which the White House frames as an international waterway, according to reporting by MS NOW. But the emerging proposal gives Tehran coordination authority over inbound traffic, a compromise that Iran's side has framed as recognition of its position and that Washington has declined to characterise as a concession.

Oman's role here is not accidental. Muscat has long served as the back channel between Tehran and Washington, and its territorial waters overlap with the strait itself. According to Al Jazeera, Iranian Foreign Ministry spokesman Esmaeil Baghaei described the Oman talks as "positive." A political scientist at the University of York, quoted by Al Jazeera, called Oman a "very helpful, trustworthy mediator" and said the Iranians trust Muscat in a way they simply do not trust Doha or Riyadh.

Behind the scenes, Qatari, Pakistani and Saudi officials were also involved in mediation efforts, regional sources told Axios. Trump envoy Steve Witkoff held several calls in recent days with Iranian Foreign Minister Abbas Araghchi and Omani Foreign Minister Badr al-Busaidi. Two regional sources said Araghchi agreed in principle over the weekend but still needed sign-off from Iran's Supreme Leader and the Supreme National Security Council, a reminder that any announcement from Tehran moves through multiple layers of authority.

The stakes for getting this wrong are not small. The U.S. naval blockade, reimposed last month after a June memorandum of understanding collapsed, had redirected 44 commercial vessels, disabled two and boarded two, according to U.S. Central Command figures reported by CNN. The Strait of Hormuz normally carries roughly one-fifth of global oil shipments. Eight of the world's largest shipping associations have written to UN Secretary-General Antonio Guterres urging opposition to any tolls on vessels transiting the waterway, warning that charges would violate international norms and harm the global economy, according to Al Jazeera.

There's reason to be cautious. The White House, Oman and regional mediators believed they had a deal three weeks ago, only for Iran to resume attacks on ships, according to Axios. Whether Khamenei's final approval arrives before Washington's patience runs out is the question that Muscat, and energy markets, are watching most closely this week.

Sources cited:
- MS NOW (https://www.ms.now/news/oman-iran-reach-agreement-over-strait-of-hormuz)
- Axios (https://www.axios.com/2026/08/05/us-iran-strait-of-hormuz-deal-nears)
- The Washington Post / AP (https://www.washingtonpost.com/business/2026/08/05/iran-war-us-hormuz-trump-august-5-2026/11441d6a-9090-11f1-9fdc-0a725c989a7b_story.html)
- Al Jazeera (https://www.aljazeera.com/news/2026/8/6/hormuz-deal-close-whats-the-latest-on-each-sides-positions)
- CBS News (https://www.cbsnews.com/live-updates/iran-war-us-trump-strait-of-hormuz-deal/)
- CNN (https://www.cnn.com/2026/08/04/world/live-news/iran-war-trump)