Iran Preparing Hormuz Transit Management Protocol With Oman

[Financial News] Reports that Iran and Oman are preparing a joint protocol to manage transit through the Strait of Hormuz have raised hopes for a breakthrough in the month-long de facto blockade of the waterway.
On the 3rd (local time), the Islamic Republic News Agency (IRNA) reported that Kazem Gharibabadi, Iran's deputy foreign minister for legal and international affairs, said, "Iran and Oman are drafting a protocol to monitor vessels passing through the Strait of Hormuz."
Gharibabadi stated, "The passage of oil tankers through this key oil shipping route must be 'supervised and coordinated' by the two countries," but added, "These requirements do not mean restrictions. Rather, they are intended to facilitate transit, ensure safe passage, and provide better services."
The news immediately rattled the markets. Major U.S. stock indexes, which had plunged after United States President Donald Trump suggested a day earlier that "the war with Iran will continue for a few more weeks," quickly pared their losses and rebounded following the IRNA report.
However, the situation is far from entirely optimistic. Since the current war began with strikes by the United States of America and Israel on Iran on February 28, the Strait of Hormuz, a vital artery of the global economy, has been effectively paralyzed. Iran's blockade has already driven oil prices to historic levels, triggering a chain reaction of crises around the world.
In a national address on the 1st, President Trump insisted that the United States of America remains largely unaffected by the blockade, saying, "We did not need that sea route (the Strait of Hormuz) before, and we do not need it now." He was underscoring that the share of oil the United States imports via this route is relatively small.
Experts warn that it remains unclear whether the latest move by Iran and Oman will actually lead to the reopening of the strait. They note that if Iran seeks to tighten its control under the banner of monitoring and coordination, further friction with the United States of America and other Western countries will be inevitable.
The government of Oman has not yet commented on the negotiations with Iran.

jjyoon@fnnews.com Yoon Jae-joon Reporter