Iran, Oman strike Hormuz revenue deal; Tehran warns US must meet demands to reopen waterway

IRAN and Oman have reached an understanding on how revenues from the Strait of Hormuz will be shared, but Tehran has warned that the vital waterway will remain closed unless the United States accepts its conditions and returns to an earlier agreement.

The development comes as diplomatic efforts to end the war between Iran and the United States remain stalled, with control of the strategic waterway emerging as one of the biggest points of contention.

Islamic Revolutionary Guard Corps (IRGC) spokesperson Hossein Mohebi said on Wednesday that Iran and Oman had held talks for about a month and reached agreements on their respective shares of the Strait of Hormuz's waters and revenues.

“The Strait of Hormuz belongs to Iran and the country of Oman,” Mohebi said in comments carried by Iranian state media.

He said the two sides had reached results acceptable to both countries and agreed on their respective shares of the waterway and its revenues.

The comments went beyond a joint statement issued by the Iranian and Omani foreign ministries on Tuesday. That statement said the countries had discussed an “interim framework” for resuming ship transit but did not announce a final deal or mention revenue-sharing arrangements.

US accused of blocking deal

Despite the progress with Oman, Iran said the agreement is being delayed because of US opposition.

Mohebi accused Washington of obstructing the process and warned that Iran would not reopen the waterway unless the United States accepts Tehran's demands.

“If the United States stops obstructing and returns to the agreement, we can open the Strait of Hormuz within the framework of the agreement reached,” he said.

He added that if Washington does not accept Iran's conditions, “the Strait of Hormuz will not be opened under any circumstances.”

What does Iran want from the US?

Tehran has linked the reopening of the waterway to the terms of a memorandum of understanding reached in June.

Iran has demanded that Washington:

-Lift sanctions imposed on Iran

-End its naval blockade of Iranian ports

-Unfreeze Iranian assets held abroad

-Return to the earlier agreement governing the conflict and navigation through Hormuz

The United States has not indicated that it is prepared to accept these demands.

A separate dispute centres on Iran's demand that ships pay for passage through the Strait of Hormuz. Washington has rejected the demand.

Temporary transit corridor discussed

The Iranian and Omani foreign ministers held talks in Tehran on Tuesday on a framework for restoring shipping through the strait.

The discussions included plans for a temporary transit corridor and a project to clear mines from the waterway.

Iran has said that geographical coordinates for a proposed navigation route have already been agreed between the two countries.

However, Tehran has repeatedly stressed that an agreement with Oman by itself would not automatically mean the Strait of Hormuz would be fully reopened.

Why Strait of Hormuz is crucial

The Strait of Hormuz is one of the world's most important energy chokepoints.

Before the conflict, the waterway carried roughly one-fifth of global oil and liquefied natural gas shipments. Any prolonged disruption can therefore have significant consequences for energy supplies, shipping and global oil prices.

The strait has remained largely closed since the war between the US and Iran began on February 28, although some vessels continue to cross.

Millions of barrels of crude are still being transported through the waterway, but continuing attacks on shipping have made the route increasingly dangerous.

Iran says it controls passage

Mohebi claimed that Iran controls passage through the Strait of Hormuz.

He said there were no hostile military vessels inside the Persian Gulf and claimed opposing warships were at least 400 km (250 miles) from the strait.

He also said waters near Oman were under Iranian control.

The claims come amid competing efforts by Tehran and Washington to exert control over maritime traffic, with Iran maintaining its blockade and the US imposing a naval counter-blockade on Iranian ports.
Iran has started charging some ships

Iran began charging some vessels transit fees during the early weeks of the conflict, according to people familiar with the matter.

Tehran later described the payments as fees for services rather than formal charges for passage.