The Zhitong Finance App learned that Iran said it has reached an agreement with Oman on the proposed shipping route in the Strait of Hormuz, which is seen as an important step towards the reopening of this key global energy transportation channel. Affected by this news, market expectations for the resumption of navigation in the Strait of Hormuz have further heated up. International oil prices stabilized on Wednesday, and Brent crude oil remained around 79 US dollars per barrel.
Iranian Foreign Ministry spokesman Esmail Baghaei said on Wednesday that the joint declaration between Iran and Oman has now entered the final drafting stage and is currently under review. He said that negotiations between the two sides are “professional and continue to make progress” and that if “not obstructed by certain third parties,” the two sides will reach a final agreement.
Baghaei pointed out that the closure of the Strait of Hormuz was the result of attacks by the US and Israel, but he did not mention in his speech that the US would play any role in the agreement.
In fact, Iran and Oman have been negotiating the Strait of Hormuz management plan for several days. As the conflict between the US and Iran escalated for several months, the world's most important energy transportation channel has become the focus of the game between the two sides.
US President Trump said in Los Angeles on Tuesday evening that an agreement on the Strait of Hormuz is “about to be reached.”
However, Iran's state television downplayed the outcome of the negotiations on Wednesday. A person familiar with the matter said that even if Iran and Oman reach an agreement, this does not mean that the Strait of Hormuz will immediately resume opening. The report said that whether the straits will be reopened will still depend on “whether America's behavior changes.”
At the market level, international oil prices stabilized on Wednesday as there were more and more signs that the Strait of Hormuz is expected to resume navigation. Traders believe that once the strait is reopened, the daily supply of millions of barrels of crude oil interrupted by the conflict over the past few months is expected to gradually resume. As of the European trading session, the price of Brent crude oil futures fell slightly to around $79 per barrel.
The recent news and statements surrounding the Strait of Hormuz agreement come at a time when the US and Iran are at an impasse over how to end the five-month conflict. Although the two sides have now suspended large-scale military operations, many core issues, including Iran's nuclear program, have not been resolved, and the two sides have yet to reach an agreement to begin formal negotiations.
Analysts believe that whether normal navigation can actually resume in the Strait of Hormuz will not only depend on coordination and progress between Iran and Oman, but will also be affected by subsequent diplomatic interaction between the US and Iran and changes in the regional security situation. Until the relevant uncertainties are resolved, the global energy market will continue to closely monitor the development of the situation in the Middle East.