Hormuz Stability Efforts
Iranian Delegation in Oman for Hormuz Talks to Enhance Stability and Energy Security
Key Points
The Islamabad memorandum of understanding is a 14-point framework, and Paragraph 5 obliges Iran to engage with Oman to define the future administration and maritime services in the Strait of Hormuz, in line with international law and the sovereign rights of coastal states.
Masoud Pezeshkian, Iran's Parliament Speaker, is slated to undertake a state visit to Pakistan to discuss the preliminary US agreement and efforts to end regional hostilities triggered by the February events.
The visit to Oman is framed within ongoing consultations after a US–Iran agreement, with both sides reaffirming their commitment to safe maritime navigation through the Strait of Hormuz.
A high-level Iranian delegation arrived in Muscat, Oman on June 22 to negotiate control of the Strait of Hormuz — the waterway that carries 20% of the world's oil supply ET Now. Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi flew to the Omani capital for meetings with Sultan Haitham bin Tariq, days after a landmark ceasefire deal ended 114 days of war Middle East Eye.
The talks are legally required. Paragraph 5 of the Islamabad Memorandum of Understanding — the 14-point ceasefire signed June 17 — obliges Iran to work with Oman to define who runs the strait and how Washington Examiner. The 60-day clock to reach a final deal is already ticking.
A 114-Day War That Shook Global Energy Markets
The conflict began February 28 after U.S.-Israeli airstrikes killed Supreme Leader Ali Khamenei. Iran immediately closed the Strait of Hormuz in retaliation Caspian Post. The U.S. then imposed a total naval blockade on Iranian ports by April 13, costing Tehran an estimated $500 million per day. Total Iranian oil revenue lost reached $4.8 billion by May 1 Washington Examiner.
The International Energy Agency recorded a 1.1 million barrel-per-day drop in global demand during the crisis Middle East Eye. Global oil prices spiked past $100 per barrel. Pakistan brokered the peace. Prime Minister Shehbaz Sharif announced a final ceasefire text on June 12. U.S. Vice President JD Vance digitally signed the Islamabad MoU on June 14–15 alongside Iranian negotiators Democrata.
What Iran and Oman Are Actually Negotiating in Muscat
The core issue is who controls the northern transit lanes of the Strait of Hormuz. Iran has long claimed sovereign rights over those routes. International law under UNCLOS guarantees all ships the right of "transit passage" through international straits. The Muscat talks aim to merge both views into a single coordination mechanism Middle East Eye.
Iran has already set up a "Persian Gulf Strait Authority" to charge fees for navigational services — a potential permanent shift in how global shipping works Saba. Ghalibaf said upon landing that the mission is to "enhance bilateral coordination" and define "new management frameworks" for the waterway. Araghchi called the Muscat talks a "test of the implementation of commitments" made in Switzerland Caspian Post.
Shipping Industry Stays Cautious as Mines Linger
President Trump declared the strait "totally open" on June 20, boasting a record 17 million barrels moved through in a single day Middle East Eye. But the shipping industry is not celebrating yet. Iran's demining effort only began June 18–20. The Joint Maritime Information Center still rates the threat level as "Substantial" Washington Examiner.
Insurers still require war-risk premiums on all transits. A "dual route" system adds confusion — Iran demands 48 hours' notice for ships using the northern lanes, while the southern Omani corridor remains open but potentially mined Caspian Post. Commercial owners are watching Muscat closely. The outcome of these talks will determine whether the strait is truly safe or just politically declared so.
Pezeshkian Heads to Pakistan as 60-Day Deadline Looms
While the Muscat talks unfold, Iranian President Masoud Pezeshkian is set to fly to Islamabad on June 23 Saba. He will thank Prime Minister Shehbaz Sharif for Pakistan's "central mediating role" in ending the war. A Lake Lucerne Summit in Switzerland wrapped up June 21 with a 60-day roadmap for a final peace agreement.
The stakes are enormous. The Islamabad MoU's Paragraph 6 pledges a minimum of $300 billion from the U.S. and regional partners for Iranian reconstruction Democrata. But if no final deal is reached by August 2026, Trump has threatened to impose "U.S. tolls" on the waterway. He also warned, "We're going to bomb the hell out of them if they violate the agreement" Middle East Eye.
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