The US is reportedly obstructing Iran and Oman's efforts to establish a safer transit route through the Strait of Hormuz, the Iranian Revolutionary Guard Corps (IRGC) said in a statement on Wednesday.
Iran and Oman had previously reached an agreement on their respective roles in managing the vital trade route, including revenue-related matters.
The IRGC said the Strait of Hormuz would remain closed if the US did not accept Iran's conditions.
Iran-Oman Propose Temporary Navigation Corridor
Iran and Oman announced on Tuesday that their foreign ministers had discussed a framework for establishing a joint temporary navigation corridor through the Strait of Hormuz.
The two countries also discussed a joint project to clear the strait of mines.
Technical talks will also continue to form a more permanent navigation corridor in the future.
It includes information-sharing mechanisms, traffic management, and the provision of navigation and security services.
However, the effort is now facing uncertainty after the IRGC claimed the US blocked the agreement.
Trump Says Strait of Hormuz Is Working
US President Donald Trump, however, gave a different picture.
Trump said that many ships are now passing through the Strait of Hormuz and oil flows are still occurring.
He also acknowledged that there have been incidents of drones or rockets being fired from time to time, but described the strait as still functioning.
This statement is in contrast to the IRGC's stance which warned that the strait would remain closed if Iran's conditions were not accepted.
US Increases Economic Pressure on Iran
Tensions also increased after the US took a tougher approach towards Iran.
US Treasury Secretary Scott Bessent previously announced plans to increase economic pressure on Iran by imposing secondary sanctions on those who aid the country.
However, the sanctions have not yet been implemented.
Trump also said that he was in no hurry to resume negotiations with Iran.
According to him, economic pressure and military operations against Iran are now both having an effect.
Ship Flow in Hormuz Still Low
Uncertainty about the Strait of Hormuz can also be seen in the number of ships using the route.
Preliminary Kpler data showed just five commodity ships transiting the Strait of Hormuz on Tuesday, compared to a 10-day average of 15.
Before the Iran conflict, about a fifth of global crude oil supplies usually passed through the strait.
Any prolonged disruption could have a significant impact on global energy supplies and prices.
However, oil prices have recently moved lower, with Brent falling below $90 a barrel, amid developments related to US economic pressure on Iran.
Future of the Strait of Hormuz Still Uncertain
Currently, there are two developments moving in tandem.
Iran and Oman are trying to find ways to create a safer navigation route, while the US continues to increase pressure on Iran.
If the efforts of Iran and Oman are successful, trade flows through the Strait of Hormuz could return to a more stable state.
However, if tensions with the US continue and Iran maintains its stance on closing the strait, global oil markets could once again face the risk of supply disruptions.
The Strait of Hormuz remains one of the most important points in the world’s energy trade. The next developments between Iran, Oman and the US will be the focus of the market.
