Iran and Oman negotiate deal to split control of the Strait of Hormuz, reshaping global energy transit

Iran and Oman are finalizing a bilateral agreement to manage navigation through the Strait of Hormuz, the narrow waterway that roughly 20% of the world’s oil supply passes through daily. Under the emerging deal, Iran would control inbound maritime routes while Oman oversees outbound traffic, with both nations planning to introduce service fees for vessels transiting the passage. The negotiations, reported as of August 4, 2026, represent a remarkable piece of regional diplomacy. Iran and Oman are essentially proposing to turn the Strait into a managed toll road, with Iran taking the inbound lanes, Oman taking the outbound lanes, and both collecting fees. Previous timelines for reopening the Strait proposed by the Trump administration have been rejected by Iran, which appears to prefer negotiating with its neighbor across the water rather than with Washington. Oman has long positioned itself as the Gulf’s neutral mediator, having facilitated back-channel talks between Iran and the US during earlier nuclear negotiations. The Strait of Hormuz is the single most important bottleneck in global energy logistics. A stable, predictable arrangement for Strait navigation could meaningfully re...