Senior U.S. officials announced that Iran and Oman will collaborate with other Persian Gulf states to determine the administration of the Strait of Hormuz following a memorandum of understanding (MOU) expected to be signed on Friday in Geneva.
The MOU stipulates that Iran will permit toll-free passage for commercial vessels for a limited period of 60 days, after which it will engage in discussions with Oman and other Gulf nations to establish future maritime governance in accordance with international law.
President Donald Trump has emphasized the importance of maintaining toll-free access to the strait, which is vital for global oil transportation. The U.S. will also begin lifting its naval blockade of Iranian ports immediately after the MOU is signed, with a complete end to the blockade anticipated within 30 days.
Despite the easing of restrictions, a senior U.S. official noted that Iran is likely to assert its rights in negotiations, while other Gulf states are expected to resist any arrangements that do not guarantee toll-free access. The Joint Maritime Information Center has downgraded the threat level for vessels crossing Hormuz, indicating a slight improvement in the situation, although risks remain.
The MOU also includes provisions for the cessation of military operations and a commitment to negotiate a final deal within 60 days, which will address sanctions and Iran's nuclear program. This agreement could have significant implications for regional stability and the global oil market