Iran says it has agreed Strait of Hormuz shipping route with Oman
📰 source: bbc_business · 💼 business
iran says it has agreed with oman on a route for shipping through the strait of hormuz, though it warns the deal alone won't guarantee safe passage. foreign ministry spokesman esmaeil baqaei said the 'geographical coordinates' of the route were agreed, but called it 'in the final stages' and didn't give details. he cited the us naval blockade as the main factor making the strait insecure.
iran has largely blocked the strait since the us and israel attacked in late february. about a fifth of the world's oil and lng usually passes through. global oil prices have fluctuated wildly since. us president donald trump on tuesday warned iran would be 'hit very hard' if the strait didn't open 'very soon.' the new route would be temporary, lasting two to four months, according to deputy foreign minister kazem gharibabadi.
one of the main disagreements between tehran and washington has been iran's threat to impose a fee on vessels crossing. iranian officials didn't say if this formed part of the oman talks. a previous memorandum of understanding between the us and iran in june quickly fell through.
why it matters: reopening hormuz would ease oil supply fears, but us blockade and fee disputes keep energy markets on edge.
source: bbc_business
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