Iran-Oman Deal Near as 60-Day US Peace Deadline Collapses

Iran announced Monday that an understanding has been reached with Oman on a map for ships to transit the Strait of Hormuz, which carried about one-fifth of the world’s traded oil before the war began on Feb. 28 [220804][219928]. The proposed deal would allow commercial shipping to resume, with vessels entering near Iran and exiting near Oman, and no fees or tolls during an interim period [220804].

However, Iranian Foreign Ministry spokesperson Esmail Baghaei said full normalization of traffic depends on an end to US “illegal actions, interference, threats, and naval blockade” [219928]. Iran has also demanded the lifting of the blockade on its ports, the withdrawal of US forces from around the country, and reparations for war damage [220806]. Tehran insists it will control the strait and potentially charge fees through its agreement with Oman, saying the waterway will not return to being open and toll-free [220806].

The 60-day deadline for a US-Iran peace deal, signed by President Donald Trump at Versailles in June, expired Monday with both sides further apart than when the agreement was signed [220806]. The deal called for an end to the war, resolution of Iran’s nuclear program, reopening of the strait, and lifting of the US blockade — none of which has happened [220806].

Iran’s Foreign Ministry has now declared the deadline “meaningless,” accusing the United States of violating the agreement’s terms [220788]. A spokesman said there is no provision in the memorandum of understanding referring to a “60-day deadline” [220788].

The interim deal collapsed weeks after it was signed when Iran began firing on vessels using a US-overseen route along Oman’s coast. The US responded by striking Iran, which retaliated against Arab countries hosting American forces. Washington then restored a blockade on Iran’s ports [220806].

Traffic through the Strait of Hormuz has fallen to a small fraction of pre-war levels, and oil prices rose Monday as fresh attacks on vessels in the strait and renewed fighting in Lebanon clouded hopes for a settlement [220806][220614]. Iran-backed Houthi rebels in Yemen have also begun attacking Saudi oil tankers in the Red Sea, threatening another crucial trade route [220806].

Meanwhile, US Middle East negotiator Jared Kushner met with Israeli Prime Minister Benjamin Netanyahu on Monday, a day after holding rare talks with Hamas chief Khalil al-Hayya in Egypt [220805]. The meetings focused on a 15-point, US-backed road map for Gaza, which Hamas says it has accepted, including disarmament, but Israel has rejected [220805].

Israel says Hamas must fully disarm before any Israeli withdrawal from Gaza, where Israeli troops currently occupy about 60% of the strip [220805]. Several countries, including Saudi Arabia, the United Arab Emirates, Jordan, Pakistan, and Indonesia, have condemned Israel’s rejection of the plan [220805].