Iran has claimed* that a deal is close to being agreed with Oman on new arrangements for the passage of commercial vessels through the Strait of Hormuz. Iran and Oman are the littoral states of the Strait of Hormuz and their territorial sea of 12 nautical miles from the coast touch at several points in the Strait.
Lack of Omani corroboration at this time
Shipping Australia has not been able to verify the messages. Oman has not specifically corroborated the exact message from the Iranian side, although earlier communications (in June this year) did confirm that Muscat and Tehran were in talks in a joint working group. Oman has repeatedly emphasised a commitment to safe passage through the Strait in line with internationally applicable law while emphasising the sovereignty of the two nations over the strait. Muscat does not appear, at the time of writing of this article (Friday 07 August 2026) to have publicly confirmed that a deal with Iran is close to being agreed.
International law
Article 38 of the U.N. Convention on the Law of the Sea (UNCLOS) grants all ships a right of transit passage that shall not be impeded through straits used for international navigation. Article 34 of UNCLOS adds that the passage regime does not in other respects affect the legal status of the waters of such straits, the exercise of sovereignty or jurisdiction by countries bordering such straits.
Article 15 of UNCLOS provides that when two countries face each other across a narrow stretch of sea then the starting point for determining where the boundaries of the territorial sea lie is at the halfway point between the two countries. However, the countries can agree on a different boundary. A different boundary can also be justified if there is a special circumstance that makes the ordinary halfway-rule inappropriate.
Iran’s position
In a statement attributed by the Islamic Republic News Agency to a senior official of the Iranian foreign ministry, Tehran apparently claims that the understanding between Oman and Iran does not mean that there will be a complete re-opening of the Strait of Hormuz. Tehran claims that there would be a new model of transit with a significant portion of a shipping transit route would pass through Iranian territorial waters. Iran claims that an understanding has been reached with Oman on a formula under which ships would enter the Strait via the Iranian side and would leave via the Omani side. Tehran claims that the mechanism agreed by Iran and Oman will be made public with days.
Shipping industry position
Maritime shipping bodies, the Asian Shipowners’ Association, the Baltic and International Maritime Council, Cruise Lines International Association, European Shipowners, the International Chamber of Shipping, Intercargo, Intertanko, and the World Shipping Council, have released a joint letter sent to their Excellencies, António Guterres (U.N. Secretary General) and Arsenio Dominguez (IMO Secretary General) urging that there should be no compulsory tolls or charges introduced in the Strait of Hormuz and that there should be freedom of navigation.
Shipping Australia was contacted by our international shipping partners and we were asked to write to the Australian Federal Government urging that Australia support the international shipping position.
Shipping Australia has therefore written to Senator the Hon. Penny Wong, Australian Federal Minister for Foreign Affairs; Senator the Hon. Don Farrell, Australian Minister for Trade and Tourism; and Hon. Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government. We have urged that the Australian Federal Government support the international shipping industry’s position.
*Shipping Australia used ChatGPT 5.6 Sol to translate from Persian to English.
