Iran and Oman Negotiate Hormuz Strait Reopening; 20M Barrels Daily Oil Trade at Risk

Iran and Oman are negotiating to restart commercial shipping through the Strait of Hormuz, which historically carries approximately 20 million barrels of oil per day. The talks follow disruptions earlier in 2026 when US-Iran hostilities choked the waterway, spiking oil prices and pressuring global energy markets.

The negotiations focus on establishing traffic management protocols and implementing transit fees framed as navigational and environmental charges. Both countries aim to create a predictable framework that gives shipping companies cost certainty while providing Iran with face-saving revenue without appearing to capitulate to international pressure. The US and UK are reportedly planning an international conference in late July 2026 to focus on Hormuz security and stabilization.