Did Iran Propose Free Passage For Ships In Omani Waters Of Hormuz Strait In A Possible Off-Ramp?

Iran has reportedly suggested allowing ships to traverse without the threat of attack through the Omani side of the Strait of Hormuz amid ongoing negotiations with the U.S.

It remains unclear whether Iran would also commit to removing any mines it may have placed in that stretch of water or if all ships, including those associated with Israel, would be granted free passage, Reuters reported on Thursday.

The source told the publication that the success of the proposal hinges on Washington’s readiness to meet Tehran’s demands.

The proposal marks Iran’s first clear step back from its earlier, more aggressive stance, such as charging transit fees and claiming sovereignty over the strait.

White House did not immediately respond to Benzinga‘s request for comments.

Hormuz Tensions Keep Oil Elevated

The Strait of Hormuz, a narrow waterway between Iran and Oman, is a critical chokepoint in the global economy, handling approximately 20% of global oil flows, according to the International Energy Agency. The closure of the Strait could potentially lead to a global recession, as stated by the CEO of Citadel LLC, Ken Griffin. Griffin described the situation as a classic energy shock, the kind that feeds directly into inflation and growth risks.

At 4:39 am ET, Brent crude oil was trading 1.72% higher at $96.56 per barrel.

Meanwhile, on Wednesday, President Donald Trump declared on Truth Social that the Strait of Hormuz is now “permanently” open, attributing this to U.S. military superiority, naval blockade and a new understanding with China. This understanding included an agreement from Beijing not to ship weapons to Iran. However, Kpler trade risk analyst Ana Subasic stated that the Hormuz traffic flow is still 10% of pre-war levels.

Peace Talks Gain Momentum

Trump said Iran talks could resume in Pakistan within days and expressed optimism despite tensions, while downplaying the chances of extending the ceasefire and suggesting a deal is preferable under what he described as a changed regime.

Meanwhile, a Pakistani delegation led by Army Chief Asim Munir arrived in Tehran on Wednesday to facilitate a new round of U.S.-Iran talks ahead of the truce deadline, carrying a message from Washington after earlier negotiations in Islamabad ended without a deal.

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