Oman, Iran reach agreement over Strait of Hormuz

Oman on Thursday agreed to the framework of a deal with Iran to temporarily reopen the Strait of Hormuz, the global crude oil export route that Washington and Tehran have been wrestling to control since the war began, two Middle East diplomats with knowledge of the negotiations told MS NOW.

The diplomats declined to describe the details of the temporary agreement or what issues remain unresolved. But an Iranian government official linked to the deal told MS NOW on Thursday morning that it will establish new shipping routes by allowing commercial vessels to enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman.

The agreement, according to the official, does not include the collection of tolls from commercial shipping vessels seeking safe passage through the waterway. The proposal is a “temporary agreement” that would lay the foundation for Washington and Tehran to call a new ceasefire and resume the nuclear negotiations that began in mid-June but collapsed over tit-for-tat strikes in the strait.

The United Nation’s International Maritime Organization and the U.S. will be involved in the official announcement of the agreement, according to the official. Another Gulf government official with knowledge of the agreement also told MS NOW that the arrangement has been endorsed by the members of the Gulf Cooperation Council.

Officials have not said when the announcement of the deal would take place.

Whether the U.S. will support the deal on how the strait is managed, however, will depend on the final details.

“Any temporary routes will be without any impediments — meaning no approvals or permissions and no tolls or charges,” a U.S. official, who spoke on the condition of anonymity to talk about the deal, told MS NOW. “The Strait of Hormuz is an international waterway, and no party controls the lanes or the ability to transit through them.”

President Donald Trump has balked at any deal that would grant Iran more control over the strait. But the deal could pave the way for the U.S. and Iran to resume negotiations over Tehran’s nuclear program after a framework agreement that laid the ground rules for the talks collapsed in June following Iranian attacks on vessels in the waterway. The president has at times suggested the U.S. would collect fees from vessels seeking to transit the waterway but has not followed through on that plan.

The Strait of Hormuz is a narrow but critical maritime choke point through which about 20% of the world’s petroleum liquids must travel to reach the Arabian Sea, the gateway to the global market. Before the U.S. and Israel’s Feb. 28 joint strikes on Iran, the strait was considered an international shipping route that no country officially controlled. Iran swiftly launched retaliatory attacks on vessels in the waterway, which has become its strongest point of leverage.

Commercial shipping traffic has since ground to a halt, sending global oil prices soaring and putting downward pressure on the U.S. economy ahead of November’s midterm elections.

The post Oman, Iran reach agreement over Strait of Hormuz appeared first on MS NOW.

Source Author
Author: Source Author

From MS Now.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *