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Iran Conflict 2026
12AUG

Iran and Oman draft Hormuz bilateral

2 min read
14:52UTC

Esmaeil Baghaei told his weekly Tehran press conference on 18 May that Iran and Oman were 'in continuous consultations' to design a new bilateral Hormuz transit mechanism, following an expert-level meeting in Muscat the previous week.

ConflictDeveloping
Key takeaway

Muscat drafting a Hormuz mechanism with Tehran would convert a unilateral toll into a treaty Western planners must negotiate around.

At his weekly Tehran press conference on 18 May 2026, Esmaeil Baghaei, spokesman for Iran's Foreign Ministry, said Iran and Oman were 'in continuous consultations' on a bilateral Hormuz transit mechanism, after an expert-level technical meeting in Muscat the previous week, Euronews reported 1. Baghaei's weekly briefing is the primary on-the-record channel for Iran's diplomatic positions; this one extended a bilateral channel Tehran had only previously disclosed in the context of guiding Indian vessels through Hormuz minefields .

Oman shares administration of the strait of Hormuz with Iran under a 1968 bilateral agreement signed before UNCLOS was drafted. That historical priority matters for the legal architecture: a co-signed Iran-Oman transit system cannot be dismissed as a unilateral Iranian imposition the way the PGSA-only mechanism can, and it directly confronts the UNCLOS Article 38 freedom-of-navigation foundation the 26-nation coalition has been resting on .

The Muscat track also reframes Oman's diplomatic posture. Muscat has historically been the back-channel host for US-Iran talks rather than a co-administrator of pressure. Drafting a transit mechanism with Tehran rather than mediating between Tehran and Washington places Oman closer to Iran's institutional architecture than to the coalition's. If a written agreement emerges, the freedom-of-navigation argument coalition planners have been making becomes a treaty dispute between two sovereigns who share the strait, not a corridor-opening operation against an isolated obstructor. The shift is the kind of legal repositioning that, once signed, is hard to reverse with hardware.

Deep Analysis

In plain English

Iran and Oman are working on a deal to manage who gets through the Strait of Hormuz. Oman is a small Gulf state that borders the southern half of the strait. It has a long history of acting as a go-between it hosted the secret talks that produced the 2015 Iran nuclear deal. What makes Oman useful here is geography: its waters cover part of the strait's main shipping lane, so any arrangement that runs through Muscat has a legal foundation that Iran's own permit body lacks. A deal here would be harder for the US-led coalition to dismiss than Iran's unilateral toll.

Deep Analysis
Root Causes

Oman's value in this negotiation stems from a geographic fact that no political decision can alter: its territorial waters extend to the southern half of the strait's navigable channel. Any transit mechanism that runs through Omani coordination therefore operates partly inside Omani sovereign space, giving it a jurisdictional basis the PGSA's Chinese-yuan portal lacks.

A second structural driver is Iran's need for a face-saving exit from the PGSA mechanism. The PGSA generates compliance dilemmas but cannot be physically enforced against a coalition with Wedgetail AEW&C and Charles de Gaulle overhead. A bilateral Oman arrangement lets Tehran claim the PGSA succeeded diplomatically rather than retreating under pressure.

Third, Oman has an independent economic interest in Hormuz stabilisation: its LNG export revenue from Qalhat runs through the strait, and prolonged disruption costs Muscat directly.

Escalation

The Iran-Oman bilateral process is de-escalatory at the procedural level it provides a forum for managing the strait short of kinetic confrontation. Its risk is that it could harden Iran's claim to joint-administrative authority over the strait if a deal is signed before the coalition has agreed its own rules of engagement.

What could happen next?
  • Opportunity

    A signed Iran-Oman transit protocol would give the 26-nation coalition a legal text to engage with rather than a unilateral Iranian claim to refuse.

    Short term · 0.68
  • Risk

    If Oman signs a bilateral mechanism that implicitly validates the PGSA's jurisdictional claims, Gulf Cooperation Council cohesion faces a significant test.

    Medium term · 0.61
  • Precedent

    A functioning Oman-Iran co-administration of Hormuz would restructure the strait's legal governance for decades, regardless of how the 2026 conflict ends.

    Long term · 0.55
First Reported In

Update #102 · Iran signs Hormuz toll; Trump posts a cancelled strike

Euronews· 19 May 2026
Read original
Causes and effects
This Event
Iran and Oman draft Hormuz bilateral
Oman's 1968 bilateral with Iran predates UNCLOS, so a co-signed transit system would give Iran international-law cover the unilateral PGSA portal lacks and pull the coalition's freedom-of-navigation argument into a treaty dispute.
Different Perspectives
Anwar Gargash, UAE presidential diplomatic adviser
Anwar Gargash, UAE presidential diplomatic adviser
Gargash warned the region cannot stay trapped between "neither war nor peace", naming the stalemate itself as unsustainable for a Gulf state hosting US forces and absorbing the shipping-risk cost without being party to either the strike decisions or the corridor talks.
Shipping and insurance underwriters
Shipping and insurance underwriters
War-risk premiums are still set against an active blockade and a fatal Bab el-Mandeb attack with an unresolved vessel identity. A disabling strike and a diplomatic "advanced" claim pulling in opposite directions gives underwriters no single signal to reprice cover against.
Pakistan and Qatar (Oman corridor mediators)
Pakistan and Qatar (Oman corridor mediators)
Pakistan's defence minister said matters are "shaping up in favor of peace" on Hormuz and a Qatari spokesperson called the Iran-Oman reopening talks advanced. Both are publicly ahead of Tehran's own security council, which has just disowned the deal's significance.
United States Central Command / President Trump
United States Central Command / President Trump
CENTCOM confirmed a helicopter strike disabled a container ship that tried to evade the blockade, and Trump said the US "totally controls" the Strait of Hormuz. Washington is treating evasion of the blockade as grounds for disabling fire rather than the redirection tactic CENTCOM used through July.
Mohsen Rezaei, Iran's Supreme National Security Council
Mohsen Rezaei, Iran's Supreme National Security Council
Rezaei told China's ambassador Hormuz reopens only when the US ends the war and unblocks Iran's funds, and that the Oman transit deal "will have no impact" on that decision. He is drawing a hard line between the technical corridor track and the political settlement his council controls.
Yemen's internationally recognised government and affected communities
Yemen's internationally recognised government and affected communities
SABA reported at least 17 soldiers killed at Saudi-backed camps in eastern Yemen as tanker use of Bab el-Mandeb fell. The fighting adds civilian and supply risks to a route ships use when Hormuz is unsafe.