Iran and Oman have moved to finalise a deal that would reopen the Strait of Hormuz, prompting Brent crude to dip to $79.08 a barrel and U.S. WTI to $74.69, easing the five‑month supply squeeze that has pressured markets since the February conflict began.
The agreement would place Iranian authority over ships entering the Gulf, with Tehran seeking a fee of 5‑7% of cargo value, Oman proposing around 3%, and Washington insisting on no fees. Iranian Deputy Foreign Minister Kazem Gharibabadi said the new route would be temporary, lasting two to four months, and that both inbound and outbound passages would traverse Iranian waters.
Market participants view the prospect of restored traffic as a reduction in geopolitical risk, reflected in the modest price declines. The shift also signals a potential rebalancing of regional power, as Iranian control of the strait would mark a significant concession compared with the pre‑war open‑access regime.
Key points remain unsettled: the exact scope of Iranian control over outbound vessels, the mechanism for ship inspections, and whether any fee would be mandatory or voluntary. The United States continues to oppose any fee structure, while Iran and Oman have not yet aligned on the precise terms.