Iran and Oman negotiate revenue-sharing deal for Strait of Hormuz

Iran and Oman are negotiating a deal to establish a temporary shipping corridor and share revenues in the Strait of Hormuz, which has been largely closed since the U.S.-Iran war began on February 28, 2026. While the Islamic Revolutionary Guard Corps claims an agreement on waters and revenues is set, senior Iranian officials state the deal is not finalized. Tehran accuses the U.S. of obstructing the talks and warns the waterway will remain closed unless Washington lifts its blockade and sanctions.

Iran-Oman Strait of Hormuz negotiations

• ▪Iran and Oman are negotiating a deal to regulate maritime traffic and divide revenues in the Strait of Hormuz, though a senior Iranian official stated on August 26, 2026, that the agreement has not been finalized.
• ▪Islamic Revolutionary Guard Corps spokesperson Hossein Mohebbi asserted on August 26, 2026, that Iran and Oman reached acceptable results regarding their respective shares of the Strait of Hormuz's waters and revenues.

Revenue-sharing framework details

• ▪Iranian Deputy Foreign Minister Kazem Gharibabadi stated on state television that a potential agreement with Oman would exclude military vessels from using the Strait of Hormuz.
• ▪Islamic Revolutionary Guard Corps spokesperson Hossein Mohebbi did not disclose the specific financial details or principles of how revenues from the Strait of Hormuz would be generated and distributed.
• ▪The Omani government did not issue any immediate comments to confirm the revenue-sharing agreements announced by the Islamic Revolutionary Guard Corps on August 26, 2026.

US obstruction of negotiations

• ▪Islamic Revolutionary Guard Corps spokesperson Hossein Mohebbi accused the United States of obstructing and delaying the negotiations between Iran and Oman over the Strait of Hormuz.
• ▪U.S. President Donald Trump warned Oman against cooperating with Iran on August 17, 2026, threatening military action if Oman interfered with Washington's objectives.

Iranian ceasefire conditions

• ▪Iran's Revolutionary Guards stated that the Strait of Hormuz will not reopen unless the United States meets Tehran's conditions, including lifting the naval blockade, removing sanctions, and unfreezing assets.
• ▪The United States has rejected Iran's demands to lift sanctions and has flatly opposed Tehran's proposal to charge commercial ships transit fees for passing through the Strait of Hormuz.

Temporary shipping corridor proposal

• ▪Omani Foreign Minister Badr Albusaidi expressed hope on August 25, 2026, that a temporary corridor and practical arrangements to restore safe navigation in the Strait of Hormuz would soon be announced.
• ▪The proposed temporary arrangement between Iran and Oman includes plans for a transit corridor and a joint project to clear mines from the Strait of Hormuz.

Oil market response

• ▪Global oil prices fell by more than 1.5 percent on August 26, 2026, following signs of renewed diplomatic efforts between Iran and Oman to establish a temporary shipping corridor.
• ▪The Strait of Hormuz has remained largely closed since the outbreak of the U.S.-Iran war on February 28, 2026, severely disrupting a route that previously handled one-fifth of global oil and LNG shipments.

9 sources