Iran and Oman near Hormuz shipping deal as U.S. talks remain off the table

Iran has declared that a shipping agreement with Oman to reopen the Strait of Hormuz is “very close,” but stressed that direct negotiations with the U.S. are not on the table for now. The announcement came as Tehran appointed hard-line former Revolutionary Guard commander Mohsen Rezaee to lead its Supreme National Security Council, replacing Mohammad Bagher Zolghadr. Rezaee, a long-time figure in Iran’s security establishment and a vocal advocate for advancing Iran’s nuclear program, takes over the top security role amid ongoing Oman-mediated talks over safe passage through the strategic waterway. Foreign Minister Abbas Araghchi confirmed the proximity of a deal with Oman but provided no details on its substance. He reiterated Iran’s refusal to engage in direct talks with Washington, citing repeated violations by the U.S. of a short-lived interim peace agreement signed in June. “As long as the American violation of the Memorandum of Understanding continues and the US does not make amends for its violations, there is no possibility of resuming negotiations,” Araghchi told state TV. Global oil markets reacted to the developments, with Brent crude rising 0.9% to $84.30 per barrel, extending a three-session rally of more than 5%. The Strait of Hormuz, through which one-fifth of the world’s oil and gas passes, remains a flashpoint in the ongoing conflict between the U.S. and Israel that began on February 28. Washington has repeatedly indicated its involvement in negotiations over Hormuz, a claim Iran disputes. Oman, which shares a border with Iran across the strait, said its talks with Tehran were progressing in a “positive and constructive atmosphere” and called for a halt to actions in the waterway to facilitate diplomacy. Any final agreement on Hormuz would require approval from Supreme Leader Mojtaba Khamenei, who has not been seen in public since the war began. Khamenei met with President Masoud Pezeshkian on August 9 to discuss the war and the economy, as Pezeshkian faces criticism from hard-liners for advocating a ceasefire with the U.S. Iran has renewed a list of demands for Washington as conditions for fully reopening Hormuz, including lifting the U.S. naval blockade on Iranian ports, withdrawing forces from around Iran, removing sanctions, releasing frozen assets, and paying compensation for war damage. Meanwhile, tensions flared on August 9 when Iran-backed Houthi rebels claimed responsibility for an attack on Saudi Aramco’s Jizan refinery, which Saudi authorities reported as a fire that was quickly extinguished with no injuries. The incident marked at least the second blaze at the 400,000 barrel-per-day complex in a month, following satellite images of a tank fire in late July after another claimed Houthi attack. U.S. President Donald Trump has signaled a cautious approach, telling Axios that Washington was “low-keying it” and that the U.S. was “only semi-negotiating” with Iran. Trump cited Iran’s economic struggles, including year-on-year inflation of 77% according to the central bank, as factors influencing the strategy. He had previously threatened massive airstrikes but called them off to give negotiations a chance.