Hormuz deal ‘close’: What’s the latest on each side’s positions?

Iran says a deal with Oman to reopen the Strait of Hormuz is “on the verge of being finalised” after both countries confirmed they had agreed coordinates for shipping routes through the critical waterway.

The strait links the Gulf to the Gulf of Oman with Oman and the United Arab Emirates on one side and Iran on the other. It flows through the territorial waters of Iran and Oman with some of its outskirts in UAE waters.

It has become a major flashpoint in the war between Iran and the United States because one-fifth of the world’s oil and liquefied natural gas (LNG) supplies are shipped through it in peacetime. Iran closed the strait after the US and Israel began strikes on Iran at the end of February, sending oil prices spiralling and causing havoc in global energy markets.

In recent weeks, negotiations have been under way to arrive at an agreement that would restore a ceasefire and reopen the strait.

It is unclear when a deal will be announced, but on Wednesday, Iranian Ministry of Foreign Affairs spokesperson Esmaeil Baghaei signalled that Tehran and Muscat were close to finalising an agreement on a new commercial shipping corridor through the strait.

Baghaei told reporters the negotiations between Iran and Oman were “moving forward” and highlighted that “if certain third parties do not obstruct the process, the two countries are also in the final stage of reviewing and drafting a joint statement covering the main points of agreement” in an apparent reference to recent US strikes on Iran.

Talks between Iran and Oman began after Washington and Tehran signed a June 17 memorandum of understanding (MoU) that is supposed to be a framework for a peace agreement. The MoU stipulated that Iran would ensure the strait would be open to shipping for at least 60 days, but it fell apart last month. The two countries primarily disagreed on which routes ships should take, and Iran attacked several ships that had taken an Oman-approved route that was backed by the US.

Baghaei said on Wednesday that the talks with Oman covered the technical, legal, security and environmental aspects of the proposed shipping corridor.