Iran and Oman Report Agreement on Strait of Hormuz Shipping Route Coordinates in Final Drafting Stage; US Interim Deal Remains Uncertain

Iran announced on August 5 that an agreement with Oman has been reached on a proposed route for shipping through the Strait of Hormuz, with a joint statement under review and in the final drafting stage, according to Iranian foreign ministry spokesman Esmail Baghaei. Negotiations between Tehran and Muscat are described as professional and forward-moving, with Baghaei telling reporters a deal would be struck if certain third parties do not obstruct the process, according to a Telegram post. The Iran-Oman arrangement focuses on route coordinates through Omani territorial waters and does not represent a direct agreement with the United States, though Washington has indicated separately that broader interim talks are progressing. The distinction matters because Iran insists it is negotiating only with Oman on a temporary shipping corridor, while US officials have framed the discussions as part of a potential 60-day interim arrangement that could ease the blockade and create space for wider nuclear and security talks. Reports from Axios on August 5 suggested a US-Iran-Oman deal could be announced as early as Wednesday, though a senior Gulf official told CNN there is roughly a 50 percent chance of an agreement by Friday. The strait has been effectively closed to most commercial traffic since late February 2026, with only eight vessels transiting on August 4 compared to a pre-war norm of 130 to 140 per day, according to shipping data from Kpler and the Jerusalem Post. Oil markets reacted cautiously, with Brent crude trading near 80 dollars per barrel on August 5 after falling more than 5 percent on Tuesday on optimism over the talks, while the continued low transit count underscores that operational reopening remains contingent on finalizing terms and clearing mines.