Iran and Oman have not yet finalised an agreement concerning the Strait of Hormuz. A senior Iranian source told Reuters that both nations are currently working on the details of the arrangement.

Diplomatic Status

The source confirmed that negotiations remain ongoing. No final accord has been reached between the two countries regarding the strategic waterway.

Previous Context

Earlier reports from the Oman State News Agency indicated that finance ministers from Oman and Iran discussed conditions for resuming negotiations. Those talks aimed to support the resumption of navigation through the Strait of Hormuz and establish a framework for renewed dialogue focused on maritime stability.

Joe Kent, former counterterrorism chief under President Donald Trump, has warned against Washington's threat to impose crushing economic measures on Iran. On Wednesday, Kent stated that such actions would likely provoke Iran to strike US troops still stationed in the region. He argued that the US should instead offer sanctions relief and unfreeze assets in exchange for reopening the Strait of Hormuz.

Kent emphasized that the US needs to deprive Iran of the option to target its forces by pulling troops out of harm's way. He described this approach as the least destructive way to resolve the situation and put Americans first. His comments followed a post by Trump on Truth Social threatening economic woes for Tehran.

Market Impact

Uncertainty over the Strait of Hormuz has caused volatility in global markets. The waterway transported roughly 20 million barrels of oil every day in 2025. At the time of writing, West Texas Intermediate crude was priced at $84.53/bbl, while Brent crude traded at $91.90/bbl.

Diesel and gasoline prices also reflected the tension. Data from the American Automobile Association showed the national average diesel price rose to $5.5042/gallon on Wednesday from $5.4677/gallon on Tuesday. The national average gasoline price stood at $4.0860/gallon.

Geopolitical Context

Analysts note that the US is gaining control over the Strait of Hormuz, a key point of contention between Washington and Tehran. Iran had sought a 5%-7% toll on ships traversing the strait. Reports indicate Iran may be preparing to strike US targets in Europe, including assessing feasibility for a base in Bulgaria and considering Cyprus as an option.

Trump previously claimed the Strait of Hormuz belonged to the US, a assertion denied by Iran's Security Chief Mohsen Rezaee. Rezaee mocked Trump's claims, pointing to the distance between the waterway and Washington DC. The Persian Gulf Strait Authority also pushed back against Trump's statements, asserting the waterway remains blocked.

What the Numbers Show

The divergence between Brent and WTI prices ($7.37/bbl spread) alongside rising domestic diesel costs highlights the immediate transmission of geopolitical risk to consumer energy markets. While strategic control of the strait is contested, the physical throughput data from 2025 serves as the baseline for current volatility assessments.