Iran Says Strait of Hormuz Shipping Deal Is Close, but U.S. Compensation Is Required

Talks between Iran and Oman to restore normal shipping through the Strait of Hormuz are close to an agreement, Iranian Foreign Minister Abbas Araghchi said.

Araghchi made the remarks on Aug. 8 during a press conference held by President Masoud Pezeshkian, according to the state-run IRNA news agency.

The Strait of Hormuz can be reopened only if other conditions are met, including U.S. compensation for violating the Islamabad memorandum of understanding, he added.

Araghchi also discussed the traffic separation scheme, or TSS, that has been used in the strait. Iran no longer considers the existing TSS route suitable for ship traffic and says a new route must be established. Iranian and Omani forces are negotiating a new temporary route, and ships will continue using the current one until those talks are concluded.

He said an earlier MOU envisioned ship traffic through the Strait of Hormuz returning to normal within a month, and that traffic had in fact recovered to 60% of normal within two weeks of the agreement. But restrictions resumed after the U.S. tried to open a new route, he said, blaming Washington for the setback.

Earlier on Aug. 8, Sardar Mohebi, a spokesperson for Iran's Islamic Revolutionary Guard Corps, told the semi-official Tasnim news agency that the U.S. must fully accept Iran's demands and stop interfering in regional negotiations before the strait can reopen.

If the U.S. accepts those terms, the strait will definitely reopen, he said.

The Wall Street Journal reported on Aug. 5, citing sources, that Iran and Oman had agreed on key terms of a draft deal to establish a new inbound route near Iranian waters and an outbound route near Omani waters. The newspaper said the draft had been sent to the U.S. and countries in the region.

According to the draft obtained by the Journal, ships entering the strait would use an Iran-side route coordinated with Tehran, while ships leaving the strait would use a route in Omani waters coordinated with Muscat.

Under the draft, Iran would control vessels entering the Persian Gulf, but would not be allowed to impose transit or service fees. It could still receive voluntary payments designated for security or search-and-rescue costs, the report said.

Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com