Three boys play in the shallow waters of the Strait of Hormuz, as a plume of smoke rises from an explosion in the background, off Bandar Abbas, Iran. (AP Photo)Iran and Oman are close to an agreement on managing ship traffic through the Strait of Hormuz, Reuters reports, though Iranian officials say that alone won’t fully reopen the waterway, which once carried a fifth of global oil shipments. A US official told Reuters Washington expects a deal soon.Foreign Minister Abbas Araqchi said Tehran wants a new shipping route and won’t accept the old traffic system, while a temporary corridor is worked out with Oman. Iran’s security chief added demands including US compensation, an end to threats against Iran and its allies, and the lifting of sanctions and frozen assets. President Masoud Pezeshkian called this the right moment for a deal.Story continues below this adViolence continued regardless: the UAE said an Iranian missile struck another tanker, and a separate ship caught fire after being hit, per UK maritime monitors. Iran’s Revolutionary Guards said reopening the strait depends solely on Washington meeting Iran’s terms, unrelated to the Oman talks.Reuters also reported this week that the emerging deal could grant Iran unusual control over Gulf-bound vessels a concession US officials have long rejected outright.Follow The Indian Express Global Desk for live coverage of the day’s top world news.Live UpdatesAug 9, 2026 05:04 AM ISTIran-Oman deal on Strait of Hormuz is close but here’s why the strategic waterway won't open just yetIran and Oman appear close to a deal governing ship traffic through the Strait of Hormuz, but Tehran says that alone won't fully reopen the vital waterway.Here's what Reuters is reporting:Deal nearing, but conditional: Iran's foreign minister says talks with Oman are close to done, though full reopening still hinges on demands like US compensation.Attacks continue: The UAE reported an Iranian missile hit another tanker over the weekend, and a separate vessel caught fire after being struck, per UK maritime monitors.Iran's broader demands: Tehran wants an end to US threats, sanctions relief, and the return of frozen assets before fully lifting restrictions.US response tied to compliance: A US official said the blockade on Iranian ports would lift only once Iran follows through on its commitments.Guards distance the talks: Iran's Revolutionary Guards say reopening the strait depends solely on Washington meeting Iran's terms, separate from the Oman negotiations.Stay updated with the latest - Click here to follow us on Instagram© IE Online Media Services Pvt Ltd