Iran and Oman Near Deal to Share Hormuz Revenues, Barring Foreign Military Vessels

Iran and Oman have reached a preliminary agreement to divide control and share revenues from the Strait of Hormuz, proposing a toll-based framework that explicitly bars foreign military vessels. The Islamic Revolutionary Guard Corps (IRGC) confirmed the arrangement on Wednesday, signaling a major structural shift in how the world's most critical energy chokepoint is managed.[1][3][6]

The stakes for the global economy are immense. The Strait of Hormuz normally handles roughly one-fifth of the world's oil and liquefied natural gas exports. Since a military confrontation between the United States and Iran erupted in late February, the waterway has been largely paralyzed by an Iranian blockade and a US naval counter-blockade, severing a vital artery of international trade.[1][2]

Under the new framework discussed by Tehran and Muscat, commercial vessels entering the Persian Gulf would travel through Iranian territorial waters, while outbound ships would follow a route passing partly through both Iranian and Omani waters. Crucially, the agreement seeks to impose maritime service fees on transiting cargo, effectively converting an international strait into a bilaterally managed toll road.[1][3]

The settlement of revenue shares transforms the maritime framework from a purely operational shipping arrangement into a formal joint management structure. By claiming a financial stake in the transit of commercial vessels, both coastal states are attempting to monetize access to the waterway. Iran had already begun charging some vessels transit fees during the early weeks of the conflict, setting a precedent for the new system.[4][5]

Beyond the financial implications, the proposed agreement fundamentally alters the security architecture of the Persian Gulf. Iranian Deputy Foreign Minister Kazem Gharibabadi emphasized that the potential agreement would strictly exclude military vessels from using the strait. The IRGC claimed on Wednesday that the waterway is currently under its full control and that opposing warships have been pushed at least 250 miles away from the transit corridors.[1][4][5]

Washington has flatly rejected the toll proposal and the attempt to bar its naval forces from the region. The United States insists on a return to the pre-war standard of free navigation and has threatened secondary sanctions against any shipping companies or nations that comply with the Iran-Oman framework.[1][2]

The diplomatic friction threatens to derail the fragile progress. IRGC spokesperson Hossein Mohebi accused the US of obstructing the finalization of the agreement, warning that the strait will not be reopened under any circumstances unless Washington accepts Tehran's conditions. This standoff has left shipping companies caught between Iranian transit rules and the threat of US financial retaliation.[3][4]

Despite the geopolitical friction, the mere prospect of a structured reopening has eased some pressure on global energy markets. Oil prices fell to a two-week low as traders weighed the possibility that the bilateral framework could restore a degree of commercial predictability to the region, even if it comes at the cost of new transit fees.[2]

While the permanent revenue-sharing deal is finalized, the two coastal states have established temporary transit routes to facilitate immediate movement. Maritime intelligence data shows that traffic through the strait has surged nearly 400% over the past two weeks, with nearly 200 ships utilizing the corridors as negotiations continue behind closed doors.[1][5]

Tehran and Muscat have set a 30- to 60-day window to finalize the permanent maritime traffic plan. However, the ultimate success of the framework depends on whether the international community—and specifically the United States—is willing to accept a fundamental rewrite of maritime law in exchange for the resumption of global energy flows.[1][3]