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Iran says agreement with Oman on Strait of Hormuz shipping route is near
Iran says the Oman-linked route could be temporary, lasting 2 to 4 months, as oil prices edged lower with Brent around $79 per barrel.
Iran says it has reached an agreement with Oman on a shipping route through the Strait of Hormuz that is in the final stages, while warning that a deal with Oman would not guarantee safe navigation. BBC Business reports Iran’s foreign ministry spokesman Esmaeil Baqaei said the route’s geographical coordinates were agreed, and also argued that security risks persist due to the US blockade of Iran’s ports, with the United States and Oman not commenting on the proposal. Iran’s Deputy Foreign Minister Kazem Gharibabadi later told Iran’s official Irna news agency that the new route would be temporary and could remain open for two to four months. Iran has also said it requires passage to be cleared beforehand and has attacked vessels that ignored the order, as traffic through the strait has dwindled since US and Israeli attacks on Iran in February. The Strait of Hormuz is a key chokepoint for global energy trade, through which about a fifth of the world’s oil and liquefied natural gas typically passes, and reopening it has been a central issue in US-Iran discussions. BBC Business adds that a new route is being discussed amid US President Donald Trump’s warning that Iran will be “hit very hard” if the strait does not open soon, after senior US officials said talks progressed to potentially resume shipments later this week. In the market, oil prices edged lower as the standoff continued, with Brent crude down 0.3% to $79.24 in morning Asian trade according to BBC Business. OilPrice said Brent was dipping below $80, trading near $79.12 per barrel, while West Texas Intermediate was around $74.79 per barrel at the time of writing.
Latest closeWTI crude $75.12 ▼0.9%|Brent $79.49 ▲0.2%|Nat gas $2.669 ▼0.5%