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Iran and Oman Agree Corridor Coordinates as Tehran Publishes Restrictive Hormuz Draft

The step advances talks but creates legal, insurance and security hurdles that leave Gulf oil flows and global prices volatile.

Overview

  • Iran and Oman have agreed on geographic coordinates for a temporary shipping corridor through the Strait of Hormuz, a development first reported on Thursday, but negotiators have not finalised the operational or legal terms.
  • Iranian state media published an initial draft that would bar U.S. and Israeli vessels from the corridor and impose penalties of up to 20% of cargo value for violations while proposing transit fees for other ships.
  • The United States says no agreement is in force and President Donald Trump has confirmed talks are ongoing without a finalized deal.
  • New security incidents, including explosions near Qeshm and Houthi-claimed strikes on tankers, continue to threaten safe passage and mean the corridor would need demining, inspections and security guarantees before traffic can resume.
  • Markets reacted to the uncertainty with Brent trading back above $80 a barrel, Gulf exports still about 40% below pre-war levels, and major implementation hurdles such as sanctions, insurance rules and payment arrangements keeping any reopening uncertain.