Iran Delays Strait of Hormuz Agreement as US Threats Persist

Iran will not move forward with the Strait of Hormuz agreement with Oman so long as it faces what it calls US threats, Iranian officials said. The delay pushes back a deal that was expected to be announced Wednesday, according to earlier reports.

The arrangement would have given Iran formal control over a northern shipping lane in its territorial waters for inbound traffic. Outbound vessels would use a southern lane in Omani waters, coordinated with Tehran. A 60-day test period with no tolls was planned, followed by 30 days of mine clearing in the median lane.

A previous ceasefire and memorandum of understanding between the two countries lasted less than three weeks before collapsing. That deal was also supposed to run for 60 days.

Iran has already said ship traffic through the strait will not return to pre-war levels even after any reopening. Oil pipelines bypassing the waterway and shadow fleets have kept some barrels moving during the conflict. Traders said any further delay in formalizing the arrangement keeps the risk of disruption alive for tanker routes that carry about a fifth of the world's seaborne crude.

The strait is the only passage from the Persian Gulf to open ocean. Iran's position as the de facto gatekeeper has been a central issue in the region since hostilities escalated. The new agreement was seen as a step toward reducing friction, but the latest statement from Tehran suggests that step is not imminent.

Oil prices saw little immediate reaction. Brent crude traded near $75 a barrel in early European hours. Analysts at Standard Chartered said the market has already priced in a prolonged period of constrained flow through the strait, with the shadow fleet absorbing most of the supply gap. A formal reopening would have been a modest negative for prices, they said. The delay removes that downside risk for now.