Agreement Between Iran and Oman on the Strait of Hormuz to Be Signed Soon

Serdar HocamAuthor & Editor

The memorandum regulating the safe passage route in the Strait of Hormuz between Iran and Oman is expected to be signed in the coming days.

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İran: Umman ile Hürmüz anlaşması birkaç gün içinde imzalanacak

Iran announced that the agreement containing the temporary safe route to pass through the Strait of Hormuz, alongside Oman, will be officially signed within a few days.

Final Stage in Negotiations

Iranian Foreign Ministry Spokesperson Esmail Baghaei stated in a press briefing in the capital Tehran that the negotiations carried out by the two countries for weeks have reached their final stage.

Safe Route and IMO Registration

The agreement in question includes the details of a temporary safe route for commercial vessels passing through the Strait of Hormuz.

It was reported that this document, which carries the nature of a memorandum of understanding, will be registered with the International Maritime Organization, the United Nations body responsible for global maritime transport.

Change in Oil Prices

Following the announcement of the agreement, oil prices in international markets reversed their upward trend and recorded a decline.

Trading at $97.93 earlier in the day, Brent crude oil dropped by 0.1 percent to the level of $96.15 per barrel.

Market Expectations and Commercial Impacts

Some market traders consider it a low probability that the US would accept Iran having a say over vessels passing through the strait.

Despite this, it is anticipated that the reached memorandum will contribute to more tankers and commercial vessels passing safely through the Strait of Hormuz.