Negotiations between Iran and Oman over control of the Strait of Hormuz — the narrow waterway between the two countries that carries roughly a fifth of the world's oil and gas supplies — are advancing, with both sides describing the atmosphere as positive. Yet a full reopening of the strait remains out of reach after Iran's top security body issued an expanded set of conditions it says Washington must meet before commercial shipping can resume freely.

Oman's foreign ministry said on Saturday that talks were proceeding in a "positive and constructive atmosphere" and urged all parties to avoid actions that could damage progress. Iranian Foreign Minister Abbas Araghchi said the two countries were "very close" to agreeing on a new transit route through the strait, adding that technical and legal work on a permanent arrangement was still ongoing. The proposed deal, as reported by regional officials, would create two shipping lanes: one for vessels entering the Gulf, controlled by Iran, and one for those exiting, controlled by Oman. Iranian officials have indicated Tehran would not formally charge tolls under the arrangement, but ships would pay fees described as covering environmental and security services — a distinction Washington reportedly rejects entirely.

However, Mohammad Bagher Zolghadr, secretary of Iran's Supreme National Security Council and a former commander of the Islamic Revolutionary Guard Corps (IRGC), made clear on Saturday that the Iran-Oman deal is separate from the broader question of reopening the strait. He listed six conditions the United States must meet first: ending threats against Iran and what he called insults to its national and religious values; permanently halting attacks against Iran and its allies in Lebanon, Palestine, Yemen and Iraq; lifting the US naval blockade and withdrawing American naval and air forces from the region; compensating Iran for damage from what he described as two "imposed wars"; lifting sanctions; and unconditionally releasing frozen Iranian assets. The IRGC's spokesperson reinforced this position, saying: "Whenever the United States accepts Iran's conditions, the Strait of Hormuz will certainly be reopened." These demands go beyond the terms of a June memorandum of understanding between Washington and Tehran, which had framed similar issues as part of a phased, reciprocal process rather than preconditions.

Washington's position, articulated by an unnamed US official, is that the naval blockade of Iranian ports will be lifted once commercial shipping through Hormuz is restored "without impediments", with American steps tied to Iran fulfilling its own commitments. US Vice President JD Vance said the United States had destroyed Iran's nuclear programme and significantly degraded its conventional and unconventional military capabilities, and was now assessing whether Tehran was prepared to make the long-term changes needed to improve relations. The 60-day negotiating window established under the June memorandum expires in just over a week, though it can be extended.

Iranian President Masoud Pezeshkian, widely regarded as a relative moderate within Iran's political system, struck a more conciliatory tone, saying at a press conference that "now is the best time for an agreement" and expressing hope that Iran could move beyond a state of "neither war nor peace." His comments highlight a tension at the heart of the negotiations: while diplomatic momentum is building and Oman's mediation has produced tangible proposals, Iran's security establishment appears to be raising its price. Complicating the atmosphere further, the UAE said on Saturday that Iran had struck a vessel belonging to Abu Dhabi's state-owned ADNOC energy company with a missile as it transited the strait; the UK's maritime trade monitoring centre separately reported a vessel had caught fire after being hit by a projectile near the Omani town of Khasab. No casualties were reported in either incident. The continued attacks underscore the fragility of any arrangement that has not yet been formally agreed upon and implemented.