Oman, Iran Agreement Signals Growing Regional Cooperation

The agreement between Oman and Iran regarding the Strait of Hormuz framework is being highlighted as a major regional development, indicating growing cooperation between the two countries.

Iranian officials claim that Oman has approved a framework of understanding concerning the Strait of Hormuz, a strategically vital waterway that plays a major role in global energy supplies and international trade.

Iran and Oman have reached a broad consensus on a proposed framework to govern commercial shipping in the Strait of Hormuz, according to Iranian officials. The agreement, however, still requires final approval from the senior leadership of both nations before it can be formally adopted.

Hassan Ghashghavi, spokesperson for the Iranian Parliament’s National Security and Foreign Policy Committee, stated that discussions were in their final stages and that both sides had largely agreed on the overall framework. He added that the matter will now be decided by the highest authorities.

The proposed “Framework of Understanding” aims to restore the movement of commercial vessels through the vital waterway. According to reports, the strait, through which approximately 20% of the world's oil supply has historically passed, was effectively closed by Iran during a regional conflict that began after a joint US-Israeli attack in February.

Under the proposed arrangement, Iranian authorities would monitor ships entering the strait, while Omani officials would oversee vessels that are exiting. The plan suggests that ships would initially use separate Iranian and Omani sea routes before being directed to a central channel.

The development comes as US President Donald Trump was quoted in a report saying an Iran war may end soon, while backing Pentagon Chief Hegseth.

As reports indicate an Iran-Oman deal on the Strait of Hormuz is nearing, United States President Donald Trump is reportedly facing pressure regarding the negotiations, with the next 48 hours deemed critical.

Commercial and oil tanker traffic through the Strait of Hormuz has significantly fallen this week, with only 33 vessels passing between Monday and Thursday, a one-third decline compared to 50 vessels last week. Just four vessels crossed the waterway a day earlier. Shipping companies are exercising caution due to prevailing security concerns. The Pakistan Stock Exchange (PSX) KSE-100 Index shed over 400 points on Friday amid concerns around the opening of the Strait of Hormuz.

Oil prices rose due to concerns over Iran and Oman's potential restrictions on the Strait. Iran has suggested banning vessels deemed hostile from the strait and heavily fining violators up to 20% of cargo value. Iran is reportedly seeking fees of between 5% and 7% of cargo value, while Oman is discussing around 3%, and the United States wants no fees. Brent crude futures rose 99 cents, or 1.2%, to $83.48 a barrel, and US West Texas Intermediate futures rose 85 cents, or 1.1%, to $78.84. Oil futures settled up over $3 a barrel on Thursday. An Iranian lawmaker confirmed a parliamentary committee is reviewing a preliminary bill for these restrictions. Four industry sources have indicated the proposed deal is not easily workable due to US sanctions.

Reports now indicate that Iran and Oman have agreed on a 60-day framework for reopening the Strait of Hormuz, a critical waterway for global trade. This updates earlier reports of a seven-day framework.