Iran and Oman agree on outline to reopen Strait of Hormuz, with major implications for oil and risk assets

Iran and Oman have agreed on the outline of a 60-day interim framework to resume commercial shipping through the Strait of Hormuz, the narrow waterway that functions as the global oil market’s most important bottleneck. The agreement, reached on August 5, would designate shipping lanes with vessels entering closest to Iran and exiting through the lane nearest to Oman. Maritime traffic through the strait has been reduced by over 90% during the 2026 Iran conflict that began in February. What the framework actually looks like The deal is structured as a provisional arrangement rather than a permanent resolution. Ships would follow a prescribed routing pattern, entering through the lane closest to Iranian waters and departing via the channel nearest to Oman’s coastline. The 60-day window is designed as a trial period. If the initial implementation goes smoothly, extensions are on the table. The framework still requires approval from Iran’s Supreme National Security Council, and potentially from Supreme Leader Ayatollah Mojtaba Khamenei himself. Iranian officials have been emphatic that these negotiations are strictly bilateral, between Tehran and Muscat. US officials have reportedly be...