Strait of Hormuz Agreement: Iran and Oman have agreed on the overall framework of a memorandum of understanding covering navigation through the Strait of Hormuz, marking a key development in talks involving the waterway. Hassan Kashkavi, spokesman for Iran’s parliament National Security and Foreign Policy Committee, said the final text and specifics of the agreement will be published shortly. A preliminary Iranian draft published Aug. 6 outlines a strategic management plan that would bar hostile parties from transiting the strait and impose fines of up to 20% of cargo value for violations.
Iran has said arrangements over the Strait of Hormuz should be negotiated only with Oman and has rejected external involvement. However, U.S. President Trump said on Aug. 6 that the U.S. is participating in the talks. On Aug. 7, a U.S. official said Oman and Iran had made progress and were expected to reach an agreement soon. The official said that if an agreement is announced to restore unimpeded commercial shipping, the U.S. will lift its blockade on Iranian ports, while U.S. actions will remain conditional on Iran’s actual performance and fulfillment of its commitments. Iran and Oman had no immediate comment.
Strait of Hormuz Agreement Moves Toward Final Approval
Axios reported that a diplomat from the mediation country said Iranian negotiators are awaiting final approval from Iran’s Supreme National Security Council for an agreement involving Oman and the United States. The diplomat said approval is expected soon. Iranian President Pezeshkian separately said Iran made no concessions in negotiations over an Iran-US ceasefire memorandum. He said the agreement had been scheduled to be signed by U.S. President Trump to guarantee implementation, but the U.S. reversed course within 24 hours.
Pezeshkian also accused the U.S. and Israel of trying to drive a wedge between Iran and its Gulf neighbours. He said U.S. forces used regional bases to strike Iran and that Iran had taken defensive measures. Iran’s foreign ministry spokesman said Trump had vowed that the U.S. would apply to Iran the same approach used against Venezuela. He warned that Washington cannot claim “war spoils” without winning the war and said it risks a stalemate, dwindling weapons stockpiles and loss of credibility if it fails to achieve its claimed objectives.
The financial pressure on Iran is also continuing. U.S. Treasury Secretary Bessent said Iran’s shadow-banking networks are being squeezed by the “Economic Fury” operation and that the regime’s channels for moving funds are running out. He said the U.S. Treasury will continue exposing these networks and severing their links to the U.S. financial system. The U.S. State Department said the U.S. Treasury had taken action to dismantle a network of money exchangers and shell companies that helped Iran secretly move hundreds of millions of dollars through the international financial system. The network funneled oil revenues to Tehran and used front companies to launder funds and evade sanctions aimed at curbing its destabilizing activities.
Bessent also said the Strait of Hormuz will never return to its prior status because Iran has used it as a chokepoint. He expects the strait to gradually lose importance over the next two years and become a routine waterway, with more than 50%—possibly up to 70%—of energy now transported through it shifting to pipelines. Separately, on Aug. 7 local time, Iran’s deputy foreign minister said Persian Gulf security should be maintained by regional states and urged regional security issues to be resolved without external interference.
The Iranian deputy foreign minister also said Iran had submitted and recorded evidence with the UN Security Council showing that some attacks on Iran originated from other countries’ territory, including several direct strikes. Based on current information, he said regional states now recognize that escalation and continued military operations would seriously threaten their security. He added that conditions are ripe to resume security talks among Persian Gulf states, as negotiations over the Strait of Hormuz Agreement continue.
