Iran and Oman draft pact to reopen Strait of Hormuz, barring U.S. and Israeli ships

Iranian state media disclosed details of a draft agreement with Oman that would allow the Strait of Hormuz to resume commercial traffic under Iranian oversight. The proposal bars U.S. and Israeli vessels from the waterway and threatens fines of up to 20% of a ship's cargo value for breaches. It also stipulates that entities deemed responsible for damage to Iran could be denied passage until compensation is paid.

Under the draft, Iran would handle navigation guidance, vessel monitoring, maritime security and environmental protection. A fee structure for passage was mentioned, though Iran denied reports of a dispute with Oman over toll charges. The arrangement is said to depend on Washington lifting its blockade of Iranian ports, and Oman has not yet commented publicly.

No Gulf Cooperation Council members have formally responded, but officials from the UAE, Bahrain, Kuwait, Saudi Arabia and Qatar have expressed a desire for de-escalation and the reopening of the strait, which has been closed since the conflict began in February. In the past, these states have rejected Iranian proposals to control the strait, describing them as violations of international law.

Separately, Houthi rebels attacked Saudi Arabia’s Najran Province, injuring 11 civilians, according to Saudi military statements. The militia, backed by Iran, has also stepped up attacks on Saudi oil vessels in the Red Sea and on Yemeni government forces in central Yemen, raising concerns about the stability of a 2022 truce between the Houthis and Saudi Arabia.