A deal between Iran and Oman on reopening commercial shipping through the Strait of Hormuz is close to being finalized, according to the Foreign Ministry in Tehran. Around one-fifth of the world’s seaborne oil has historically passed through the strategic waterway.

The proposed agreement would establish a new corridor through the strait, with Iran expected to gain greater control over vessels entering the Persian Gulf while Oman would oversee outbound traffic, according to media reports.

Iranian Foreign Ministry spokesman Esmaeil Baghaei told reporters on Thursday that negotiations were “nearing completion,” with Iran and Oman having agreed on the routes and in the final stage of drafting a joint statement, provided “certain third parties do not obstruct the process.”

Officials in Tehran maintain that reopening the strait depends on the US ending its naval blockade of Iranian ports and other military actions against the Islamic Republic.

US President Donald Trump said earlier this week that talks were “moving along nicely” and predicted the strait would reopen “very soon.” Reuters, however, cited Iranian sources as saying key details remained unresolved.

Tehran reportedly warned Gulf Arab states it would retaliate against their energy and other strategic infrastructure if they failed to persuade Washington to halt military action and return to the peace table. US Central Command (CENTCOM) said it was continuing to enforce the blockade, adding that US forces had redirected dozens of commercial vessels in the Gulf.

The latest negotiations follow weeks of disagreement over the interpretation of a memorandum of understanding that was intended to ensure a ceasefire and pave the way for reopening the strait.

In the memorandum, Iran pledged to use “its best efforts” to ensure the safe passage of commercial vessels free of charge for 60 days while negotiating with Oman over the future administration of the waterway. Tehran argues that the agreement allows it to regulate shipping through a designated route and collect transit fees, while Washington insists the strait must remain fully open to international navigation.

The proposed 60-day arrangement was intended to reopen the Strait, support a US-Iran truce and restart negotiations on Tehran’s nuclear program, Axios reported this week. Iran and Oman would also work to clear naval mines from the median lane of the strait within 30 days.

However, shipping and insurance industry sources reportedly questioned whether any arrangement involving Iranian transit fees would be workable under existing US sanctions.

US-Israeli strikes on Iran in late February prompted Tehran to close the Strait of Hormuz, with Washington responding by imposing a naval blockade of Iranian ports. The blockade disrupted traffic through one of the world’s most important energy corridors, sending global oil prices soaring to as high as $120 a barrel. Oil prices jumped again on Thursday following reports that Iran was seeking stricter conditions for reopening the waterway.