Iran Says It Will Reopen Strait of Hormuz if US Honors Islamabad MOU, Reaches Route Deal With Oman

Iran has reached an agreement with Oman on shipping routes through the Strait of Hormuz. Tehran also said it would reopen the waterway if the US fulfills commitments under the Islamabad memorandum of understanding signed in June.

Anadolu Agency reported on August 28 that Iranian President Masoud Pezeshkian said Tehran and Muscat had agreed on transit routes through Hormuz. He said Iran would reopen the strait if Washington carries out the obligations set out in the MOU. The agreement has also been reported to Supreme Leader Ayatollah Ali Khamenei, he added.

Pezeshkian said the conditions for reopening the strait include lifting US sanctions and the blockade on Iran, returning frozen assets, starting large-scale investment and ending the war in Lebanon. He also said the US must return to the MOU framework.

Iran's Supreme National Security Council has also effectively approved the Hormuz agreement, according to Pezeshkian. He said 12 of the council's 13 members backed the plan and called it an important achievement reached through collective judgment.

The US and Iran signed the 14-point Islamabad memorandum in June as part of talks aimed at ending the war. Under the agreement, Iran would support the safe passage of commercial vessels for 60 days and consult with Oman on the strait's future management. The two sides also agreed to discuss a final ceasefire plan and sanctions relief during the negotiations.

The memorandum effectively lost force in July after the US and Iran accused each other of violating the deal. Iran and Oman have since held separate talks on temporary routes for commercial shipping and management of the strait.

Pezeshkian said some sanctions on Iran's banking and petrochemical sectors were eased while the MOU was in effect. He also claimed Iran exported about 90 million barrels of crude during that period. Talks on the return of frozen assets and an investment plan worth $300 billion were also under way, but stopped as the war continued.

Before the war, the Strait of Hormuz carried about 20 million barrels a day of crude and petroleum products, making it a critical artery for global energy shipments. A normalization of traffic could ease disruptions to Gulf oil and liquefied natural gas shipments, as well as marine insurance costs. Still, a full reopening may take time because it remains unclear whether the US and Iran will implement the agreement.