The US, Oman, and Iran have agreed the contours of a deal to reopen the Strait of Hormuz that could be announced today, Axios reported.
Oil prices plunged on the news, reflecting expectations of a lasting arrangement that has failed to materialize several times.
The deal would implement a ceasefire and establish a 60-day period for Oman and Iran to govern the Strait of Hormuz: Ships entering the channel would use a northern lane passing by Iran, then exit through Omani waters, in coordination with Tehran. Crucially, no tolls or fees would apply.
Iranian negotiators are gambling everything on the waterway, according to the Wall Street Journal, treating it as a red line and their best leverage over Washington.