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The proposed Iran-Oman Hormuz deal advanced Wednesday after both countries agreed on the geographic coordinates for a new shipping route. However, the Strait of Hormuz has not reopened, and Iran says the route agreement alone cannot guarantee safe passage. Negotiators still face disputes over Iranian control, shipping fees, naval mines and the U.S. blockade.

President Donald Trump said an announcement could come Wednesday or Thursday after negotiators made significant progress. Iranian and regional sources offered a more cautious assessment, saying important terms remain unresolved. Iran and Oman have not released a signed agreement or announced when commercial traffic could resume.

Iran-Oman Hormuz Deal Covers Route Coordinates

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tehran and Muscat reached an understanding on the proposed route’s geographic boundaries. He described the negotiations as professional and said officials were finalizing a joint statement. Baghaei warned that interference from unnamed third parties could still disrupt the process.

That understanding represents progress, but it covers only one part of a reopening agreement. Ships still need security guarantees, mine-free lanes and clear rules governing inspections. Maritime companies and insurers will also need evidence that vessels can cross without attacks, seizures or unexpected charges.

Baghaei emphasized that the Iran-Oman Hormuz deal would not guarantee security by itself. Tehran has tied the strait’s reopening to Washington honoring an earlier memorandum that called for an immediate halt to military operations. Iran has also demanded that the United States end its naval blockade of Iranian ports.

Competing Reports Describe Different Routes

Axios reported that inbound vessels would use a northern lane through Iranian waters. Outbound ships would use a southern route through Omani waters while Oman coordinated with Iran.

The Associated Press reported a similar division of traffic, with Iran overseeing vessels entering the Persian Gulf and Oman managing departing ships. However, an Iranian deputy foreign minister said commercial vessels would pass through Iranian territorial waters during both parts of their journeys. Reuters sources said Iran’s authority over outbound traffic remains one of the unresolved issues.

Those differences matter because the route will determine how much authority Iran gains over the waterway. Before the war, commercial ships crossed the strait without seeking Iranian approval or paying Tehran. A deal that gives Iran control over inbound traffic would significantly change the regional balance of power.

Iran-Oman Hormuz Deal Leaves Fees Unsettled

CBS News reported that the proposed 60-day arrangement would prohibit tolls and service fees during the temporary period. The plan could receive an extension while Iran, Oman and regional mediators work toward a permanent agreement.

AP sources offered a different account. They said the emerging proposal included service fees for maritime security and environmental protection. The United States has repeatedly opposed any plan that allows Iran to charge vessels for crossing an international waterway.

Reuters reported that Iran wants fees equal to 5% to 7% of each vessel’s cargo value. Oman has reportedly discussed a lower rate near 3%, while Washington continues pushing for no fees. No government has publicly confirmed those figures in a final agreement.

The difference between no fees and a percentage of cargo value could total millions of dollars for some tankers. Shipping companies would likely pass much of that expense to buyers and consumers. The unresolved fee question therefore carries consequences far beyond the Persian Gulf.

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Temporary Plan Includes Mine Removal

Axios reported that the temporary framework would last 60 days and could receive an extension. During that period, crews would work to clear naval mines from the strait’s central lane within 30 days. Negotiators could then establish a permanent route using the cleared area.

Iranian and Omani officials have not publicly confirmed that entire timeline. They also have not explained who would remove the mines, inspect the route or verify that the waterway is safe. Until those details become public, the 60-day framework remains a reported proposal rather than an operating agreement.

Naval mines represent only one danger facing commercial ships. Vessel operators must also consider missile attacks, drone strikes, seizures and rapidly changing military orders. A line drawn on a map cannot remove those risks without enforcement and cooperation from the countries involved.

Trump Says Reopening Is Near

Trump said Tuesday that negotiations were moving forward and predicted that the strait would open soon. He later told reporters that an announcement could arrive Wednesday or Thursday. The president had previously cited diplomatic progress when he canceled plans for another major U.S. attack on Iran.

Tehran disputes Trump’s description of the negotiations. Iranian officials say they have negotiated with Oman rather than holding direct recent talks with the United States. Oman and other regional countries have carried messages between Washington and Tehran throughout the process.

Previous agreements have also collapsed after public announcements. A June memorandum briefly reduced fighting and attempted to restore shipping, but renewed attacks and military operations ended that progress. The failed arrangement explains why regional officials remain cautious despite Trump’s optimism.

Oil Markets React Before Ships Return

Oil traders have already responded to signs of diplomatic progress. Brent crude traded below $79 per barrel Wednesday afternoon after reopening hopes helped push prices down approximately 5% Tuesday. Prices remain sensitive to every new statement from Washington and Tehran.

Before the war, the Strait of Hormuz handled oil flows equal to approximately 20% of global petroleum-liquids consumption and more than 20% of global liquefied natural gas trade. Disrupted traffic has raised transportation, insurance and energy costs across several countries. Reopening the waterway could relieve some pressure, but only if ships actually begin moving through it safely.

Markets may react to diplomatic announcements before shipping companies do. Vessel operators must evaluate physical security, insurance coverage and the risk of another agreement collapsing. Regular commercial traffic will provide stronger evidence of reopening than political statements alone.

What Must Happen Before the Strait Reopens

Iran and Oman must first release their joint statement and explain the route’s rules. The United States and Iran must also resolve the naval blockade, military operations and Tehran’s proposed authority over commercial traffic. Negotiators will then need an enforceable plan for fees, inspections and mine removal.

A meaningful reopening would produce visible changes. Commercial ships would begin regular crossings, insurers would reduce war-risk premiums and vessels waiting outside the Persian Gulf would resume their journeys. None of those indicators depends solely on Trump announcing that a deal is close.

The Iran-Oman Hormuz deal has moved negotiations forward, but it has not reopened the Strait of Hormuz. For now, the countries have agreed on where a route could run, not all the conditions needed to use it. The distinction will remain critical until ships can cross safely under clear and publicly confirmed rules.