Iranian media on Thursday said a framework agreement between Tehran and Oman over the management of the critical Strait of Hormuz would prohibit passage of U.S., Israeli, and hostile vessels until compensation was paid. Separately, there were reports of Iranian attacks in the vital waterway.
Market participants have been keenly awaiting any headlines on progress towards reopening the chokepoint, which served as a conduit for a fifth of the world’s oil and gas before the start of the Middle East conflict in late-February. Its control has been one of the main sticking points between the U.S. and Iran.
Iran and Oman have been working on a framework over managing the strait. Iran’s Fars News said the initial text of the plan was under review by authorities, citing parliament member Alireza Salimi. According to the plan, aside from the prohibition of the vessels, any ships breaking with Iran’s protocols would face fines of up to 20 percent of the value of their cargo, Fars said.
The news agency separately reported that according to the plan, entry into the strait would be through the northern corridor near the Iranian coast and exit would be through the southern corridor near the Oman coast, citing an informed source in the foreign ministry. After a specified deadline, transit through both corridors would be stopped and would instead take place through a middle corridor, with Iran managing the entry and jointly managing the exit with Oman.
President Donald Trump earlier this week said he had called off a powerful planned attack against Iran due to progress towards a deal, while warning that Washington was “ready to go” if an agreement was not reached. Both sides have engaged in a cycle of threats, attacks, and concessions since the onset of their war, and Tehran has publicly denied any recent negotiations with Washington, stating that it was only dealing with mediators in Oman.
On Thursday, Trump was asked whether a Strait of Hormuz deal had been reached. “Well, I don’t want to say it has been. It’s sort of open right now…we control it. Now, we control it, but they can always shoot something, they always have something,” he told reporters.
“I’m involved in the negotiations, I think we’re doing fine. It could be soon,” the president added.
On Wednesday evening, Trump had repeated his claims that Iran had asked the U.S. to call off a major attack over the weekend.
Investors have retained mostly guarded hopes for a prolonged de-escalation in the months-long Iran war, with analysts highlighting the recurring cycle of threats and pullbacks.
Oil prices marched higher on Thursday against this backdrop, with Brent crude futures surging 5.3% to settle at $83.69 a barrel. The oil benchmark was still nursing weekly losses. Last month, Iran’s move to effectively restrict tanker traffic through the vital waterway triggered a brief surge in crude to around $100 a barrel.
Separately, Trump claimed that the U.S. has “massive amounts of munitions” and more were being manufactured, rebuffing reports of declining U.S. armament stockpiles.
“The ’leakers’ of these treasonous statements are being hunted down. Long term jail sentences will be sought,” Trump said in a social media post on Wednesday evening, appearing to reference a slew of media reports this week.
NBC News reported on Wednesday that the Pentagon held an emergency meeting over a weapons shortfall. Earlier in the day, the Washington Post reported Trump had clashed with Defense Secretary Pete Hegseth over munitions shortages.
Reuters also reported on Tuesday that the U.S. had used “virtually all” of its long-range precision missiles during the Iran war.
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