Iran Says Strait of Hormuz Governance Should Be Decided by Iran, Oman

Iran said authority over the management of the Strait of Hormuz belongs to Iran and Oman, as markets watch a dispute between Washington and Tehran over control of the waterway.

Walter Bloomberg reported on May 29 that Iranian Foreign Ministry spokesman Esmail Baghaei said Iran and Oman should decide how the Strait of Hormuz is governed.

The comments came as the US and Iran remain at odds over transit rules and the management framework for the strait. The US has called for the waterway to remain fully open and for freedom of navigation to be guaranteed. Iran, meanwhile, has maintained that authority over the strait's management is a matter of sovereignty for the coastal states.

The two sides have continued talks covering an extension of a ceasefire, the resumption of nuclear negotiations and the normalization of conditions in the Strait of Hormuz. But gaps remain on major issues, including control of the strait, uranium enrichment and the scope of sanctions relief, the report said.

Markets are assessing whether the outcome of negotiations over the Strait of Hormuz could sway international oil prices and volatility in global commodities markets.