Iran and Oman are close to agreeing on joint management of the Strait of Hormuz, media have reported, citing a statement by Iran’s foreign ministry spokesman, Esmaeil Baghaei.
Crude oil prices have been trending lower, in the meantime, with Brent crude dipping below $80 per barrel and trading at $79.12 per barrel at the time of writing. West Texas Intermediate was changing hands for $74.79 per barrel, down 0.57%
According to Baghaei, the deal with Oman was “in the final stages”, the BBC reported today. Bloomberg, meanwhile, quoted the official as saying the negotiations with Oman were “forward-moving”, and that the deal was close to finalization “if certain third parties do not obstruct this process,” quite possibly meaning the United States, which has said, as reported by Reuters, that it would not allow Iran to have control over the waterway.
The publication reported on Wednesday that the negotiations between Iran and Oman had included the idea to have Iran control vessel traffic coming into the waterway and the U.S., reportedly, did not oppose such a stipulation. That would be a major U.S. concession to Iran, the report noted.
Reuters also quoted the Iranian side as saying the negotiations with Oman had actually involved Iran having control over both incoming and outgoing vessel traffic in the Strait of Hormuz.
Meanwhile, President Trump has threatened more violence unless a deal was agreed, even as he said peace talks were ongoing, which Iran denied. The U.S. president earlier this week threatened Iran “will be hit very hard” while also saying that “We’re having very good discussions,” as quoted by the BBC.
Iran has responded with its own warning. “The Iranian warning was unequivocal: if America targeted Iran’s infrastructure, they would retaliate by striking Gulf energy facilities and other regional targets,” one Gulf official told Reuters.
By Irina Slav for Oilprice.com
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