Oil markets are awaiting a decision from Iran’s supreme leader after Iranian and Omani negotiators reportedly completed a draft agreement that could reopen the Strait of Hormuz, the main export route for Persian Gulf oil and LNG.
Two regional officials briefed on the talks told the Associated Press on Wednesday that the draft had been finalized, hours after President Donald Trump said an announcement could come Wednesday or Thursday.
The proposed temporary arrangement would direct ships entering the Persian Gulf through waters controlled by Iran, while vessels leaving the Gulf would use a route administered by Oman. The agreement would revive parts of the U.S.-Iran memorandum reached in June, which collapsed after attacks on shipping resumed.
Transit fees remain a major obstacle. Reuters reported that Tehran is seeking payments equivalent to between 5% and 7% of cargo value, while Oman has proposed a 3% charge. The Trump administration has rejected any arrangement requiring ships to pay Iran for passage through what was an open international waterway before the war.
The diplomatic push comes as traffic through Hormuz remains a fraction of normal levels. Eight ships crossed the strait on Tuesday, according to Kpler, compared with roughly 130 to 140 daily transits before the U.S.-Israeli war with Iran began on February 28.
Oil prices initially fell on expectations that an agreement could restore Gulf exports, before Brent crude recovered to around $80 per barrel as attacks on regional shipping continued.
The Houthis said Wednesday that they fired ballistic missiles at the Saudi tanker Wafa near the Red Sea port of Yanbu. A separate Indian-flagged vessel sank off Yemen on Tuesday after being struck by an explosive-laden boat, while another cargo ship reported being hit near Oman’s Al Khasab port in the Strait of Hormuz.
