Commodities August 4, 2026 09:28 AM

Iran Seeks Inbound Control, Oversight of Outbound Passage in Proposed Hormuz Arrangement with Oman

Tehran pushes for authority over ships entering the Strait of Hormuz and visibility on exits under a temporary plan discussed with Oman

By Leila Farooq
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A senior Iranian official involved in negotiations said Iran is proposing temporary arrangements that would give it control over inbound shipping through the Strait of Hormuz while granting Oman a role in clearing outbound vessels after notifying Iran. The proposal marks a shift from Tehran's earlier demand for full two-way control, but disputes over authority and security concerns remain, and the strait has been largely closed since the start of the war in late February.

Iran Seeks Inbound Control, Oversight of Outbound Passage in Proposed Hormuz Arrangement with Oman
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Key Points

  • Iran is proposing temporary control over inbound shipping through the Strait of Hormuz while expecting oversight and the ability to intervene in outbound traffic.
  • The outbound lane under discussion would run between Iran and Oman, with exit clearance issued through Oman after notifying Iran.
  • The strait has been largely blocked since late February and is a major route for about one-fifth of global oil shipments, affecting energy and shipping markets.

A senior Iranian source participating in talks with Oman said on Tuesday that Tehran is seeking direct control of ships entering the Strait of Hormuz while retaining oversight and an ability to intervene in outbound traffic under a provisional plan being discussed to reopen the strategic waterway.

"This is the general idea currently being discussed," the source said, adding that the outbound lane under the proposal would follow a route between Iran and Oman and that exit clearance would be granted through Oman after Iran had been notified.

The source described the arrangement as a compromise relative to Iran's initial, more extensive demand for control of traffic in both directions. "Tehran is unlikely to change its position," the source added, while noting that Iran had shown flexibility by moving away from its original stance of seeking full authority over two-way transit.

Last month, Iran rejected an Omani plan that would have split transit routes equally between the two nations, saying that the proposal did not adequately address Tehran's security concerns until long-term regional stability is achieved.

Control of the Strait of Hormuz - the narrow channel linking the Gulf with the Indian Ocean - is a central element of negotiations to end the U.S.-Israeli war on Iran. The waterway has been largely blocked since the start of the war in late February. The strait is a primary conduit for roughly one-fifth of the world’s oil shipments as well as other critical commodities.

Before the outbreak of hostilities, vessels transited the strait freely. While the strait lies within the territorial waters of both Iran and Oman, it has generally been regarded as an international waterway.

The present routing system dates to a two-way traffic separation scheme adopted in 1968 by the U.N. shipping agency with agreement from the states in the region. That scheme created the established ship routing that divides corridors through Iranian and Omani waters. The strait itself is about 34 km (21 miles) wide and provides essential passage for energy exports from the Middle East and other cargoes, including fertilisers.

Positions remain at odds over whether Tehran’s broader authority over shipping traffic is preserved or limited. Washington has said that the memorandum of understanding concluded in June to halt the war required Iran to reopen the waterway, while Tehran contends that the same text explicitly preserved its authority over shipping traffic.


Context and implication

The proposal being discussed with Oman would give Iran control over inbound movements and visibility on outbound movements along a designated lane between the two countries, with exit permissions processed by Oman following notification to Iran. Negotiators continue to dispute the balance between navigation freedoms and the security prerogatives Iran says it requires.

Risks

  • Ongoing disagreement over authority in the strait could prolong the closure, maintaining pressure on oil and energy markets.
  • Failure to reach a mutually acceptable temporary arrangement may keep shipping disruption in place, impacting global trade flows and the shipping sector.
  • Divergent interpretations of the June memorandum could sustain diplomatic tensions that affect regional stability and logistics for energy and commodity supplies.

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