Oman's foreign ministry said on 2 August 2026 that negotiations with Iran over securing shipping through the Strait of Hormuz were proceeding positively, even as Tehran cautioned that any agreement would not immediately restore full passage through the vital waterway. Iranian Foreign Minister Abbas Araghchi described the talks as being in their "final stages," while stressing that a genuine reopening of the strait hinged on conditions unrelated to the Oman negotiations themselves. No firm timeline for a completed deal has been given by either side.
Since the United States and Israel launched strikes on the waterway in February 2026, Iran has effectively sealed off the channel through which roughly one-fifth of global oil and natural gas normally passes. Recent negotiations have centred on establishing a new maritime corridor through the strait to be jointly overseen by Iran and Oman, an arrangement both governments hope could pave the way for shipping traffic to resume.
Araghchi indicated, however, that a complete return to normal traffic through the historically busy passage would require additional conditions to be satisfied, though he gave only a brief outline of what those entailed.
What conditions is Iran attaching to reopening the strait?
Araghchi said Tehran wants Washington to compensate Iran for what it characterises as breaches of the Memorandum of Understanding (MoU) the two countries signed in June 2026 to halt fighting and pursue talks toward ending the war. That truce arrangement collapsed almost immediately, with diplomatic engagement stalling and both sides resuming attacks within days of signing.
Separately, Iran's security chief Mohammad Baqer Zolqadr told the semi-official Tasnim news agency that the Strait of Hormuz would remain closed until Washington "corrects" its conduct. He listed six demands Iran wants met by the United States, among them an end to threats against Iran, the lifting of the US naval blockade on Iranian ports, and the release of Iran's frozen financial assets.
"Subject to other conditions"
Meanwhile, Yemen's Iran-aligned Houthi movement has maintained its own blockade of Saudi Arabia's Red Sea ports since 20 July 2026, adding a further complication to regional shipping security.
How is Washington responding?
President Donald Trump said earlier in the week that an agreement with Iran "could be soon," though Vice-President JD Vance struck a more cautious tone on Saturday, telling Fox News that meaningful work remained despite the apparent progress.
"We're really in the middle of the game here. This thing is not over."
Vance said the administration was deploying "a whole host of tools — diplomatic, economic [and] military tools — to ensure that we get the best outcome for the American people." He also asserted that oil output from the Gulf would return to the "same amount" as before the US military campaign began on 28 February 2026, though he did not provide supporting figures.
"What we're really working through now is how you can actually set up a traffic scheme so that the ships can pass through safely."
A central sticking point between Tehran and Washington has reportedly been Iran's proposal to levy a fee on vessels transiting the strait. Citing an unnamed Iranian official, previously reported Tehran was seeking charges of between 5% and 7% of cargo value from ships crossing the waterway. Vance dismissed the reports, stating flatly that Iranian officials had told US counterparts they had no intention of tolling the strait.
What has happened with shipping in the strait recently?
Oman's warning against strikes on commercial vessels came the same day the United Arab Emirates said Iran had struck a tanker linked to its state oil firm Adnoc as it transited the strait. The UAE foreign ministry described it as a "hostile Iranian attack" involving a missile strike, adding that no casualties resulted. Later on Saturday, the UK Maritime Trade Operations agency reported that a separate vessel off Oman's coast had been hit by an "unknown projectile," sparking a fire that was subsequently extinguished with no injuries reported. It remains unclear whether the UKMTO report referred to the same ship cited by the UAE.
This is not the first vessel struck amid the negotiations: reported on 4 August 2026 that a tanker linked to Oman was also hit while the Hormuz talks were underway, highlighting the continued danger to commercial shipping even as diplomatic progress is claimed. According to the Anadolu Agency, Iranian foreign ministry spokesman Esmaeil Baghaei confirmed that technical and political consultations with Oman remain ongoing and continue to be described as positive.
What would the emerging arrangement actually cover?
Reports from 5 August 2026 indicated that Iran and Oman had agreed on specific coordinates for new shipping lanes through the strait, with the negotiations reportedly entering a final drafting stage ahead of a joint statement, according to Al Jazeera. Baghaei said the discussions are focused on establishing safe inbound and outbound shipping lanes that safeguard the sovereign rights and national security of both Iran and Oman, according to a report from Xinhua. Separately, Al Jazeera has reported that the proposed interim arrangement could run for 60 days and would not include transit fees during that period, while CNBC reported that Oman had presented Iran with a Gulf-state-backed plan favouring "voluntary" fees rather than mandatory tolls.
The current round of talks builds on months of prior engagement. Iran and Oman first agreed in June 2026 to keep discussing the future administration of navigation through the strait, including maritime services and associated costs, and formed a joint working group to consult other littoral states, according to . Deputy foreign ministers from both countries met in Tehran on 24-25 July 2026 and characterised those talks as "fruitful," according to a report from CGTN.
The broader diplomatic effort has also been documented in earlier coverage: Iran said in mid-May 2026 that it was coordinating with Oman on future management of the strait, including a proposed fee structure that the United States has opposed and challenged as inconsistent with international law, as detailed in earlier reporting on the Iran-Oman coordination. By mid-June 2026, the US and Iran had reached a framework agreement to end hostilities, though officials cautioned then that normalising oil flow through the strait would take weeks or months, as outlined in coverage of that framework deal.
What happens next?
Iran's foreign ministry has said the final outcome of the Hormuz negotiations will be announced only once talks conclude, according to Xinhua. Baghaei has separately said discussions were "on the verge of being finalised," with a joint final statement still pending, according to a report from Al Jazeera. has reported that technical and political consultations between Iran and Oman are continuing, suggesting further rounds of talks are likely before any formal agreement is signed.
Key Facts
- Oman's foreign ministry described talks with Iran on securing Hormuz shipping as positive on 2 August 2026.
- Iran's Foreign Minister Abbas Araghchi said talks were in their "final stages" but reopening depends on separate conditions being met.
- The UAE said an Iranian missile struck an Adnoc-affiliated tanker in the strait, with no casualties reported.
- Reports indicate Iran and Oman have agreed on coordinates for a new shipping corridor, with a possible 60-day interim arrangement without transit fees.
- Vice-President JD Vance said Iranian officials have denied plans to impose tolls on vessels crossing the strait.
