Iran and Oman say they are approaching an agreement on a temporary shipping corridor through the Strait of Hormuz as oil prices retreat, while Washington escalates financial pressure on Tehran and China warns the U.S. strategy could destabilize the global financial system.
By yourNEWS Media Newsroom.
Iran and Oman are moving toward a jointly managed temporary shipping arrangement through the Strait of Hormuz, offering the prospect of safer commercial passage through the critical energy chokepoint as the Trump administration simultaneously expands its economic campaign against Tehran.
The parallel developments are reshaping both the military and financial dimensions of the conflict. Oil prices fell Wednesday to their lowest levels in nearly two weeks as expectations grew that a managed corridor could improve navigation through the strait, while Iran signaled continued interest in negotiations with Washington despite rejecting President Donald Trump’s intensified economic pressure.
Omani Foreign Minister Badr Albusaidi said progress had been made after discussions with his Iranian counterpart and expressed optimism that details of a temporary arrangement could soon be announced.
“I am hopeful we will soon announce a temporary corridor for the Strait of Hormuz and practical arrangements to restore safe navigation,” Albusaidi posted on X.
The Strait of Hormuz carried approximately one-fifth of the world’s daily oil supply before the war with Iran began in late February, making any change in access to the waterway potentially consequential for global energy markets.
Brent crude, the international benchmark, traded around $86 per barrel Wednesday morning, reaching a level not seen since Aug. 14.
West Texas Intermediate, the primary U.S. benchmark, also fell to a nearly two-week low at approximately $80 per barrel.
The decline came as markets assessed the prospect of an Iran-Oman arrangement capable of restoring more predictable navigation through the strait.
Trump said Wednesday that commercial traffic was already moving through the waterway despite intermittent attacks involving drones and rockets.
“The strait, it’s functioning. It’s a functioning strait, yes. Every once in a while, there’ll be a drone or a rocket or something shot. But it is a very functioning strait. A lot of oil is pouring out,” Trump said during an interview on Glenn Beck’s radio program.
The president also repeated his assertion that mines previously threatening navigation had been cleared from the waterway and said he expects the broader confrontation with Iran to “will be ending fairly soon.”
A proposed Iranian-Omani role in managing part of the strait has previously drawn strong objections from Trump.
In May, Trump rejected the prospect of Iran and Oman controlling a portion of the waterway, saying the Strait of Hormuz constitutes “international waters.”
Three months later, in August, Trump said he would bomb Oman if it interfered with U.S. negotiations involving Iran.
The emerging maritime talks are unfolding as Washington shifts significant attention toward economic pressure.
The United States formally launched Operation Economic Outcast on Monday, an initiative intended to deprive Tehran of revenue sources the administration considers illicit, including income generated through smuggled Iranian oil.
Treasury Secretary Scott Bessent presented the campaign as an effort to isolate the Iranian government economically and increase the consequences for foreign governments and companies that continue conducting business with Tehran.
“Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent said Monday. “Those who stand with the United States will reap the rewards of our partnership. Those who tether themselves to Tehran should expect to share in the isolation of a withering regime.”
China has publicly objected to the U.S. strategy.
Chinese Foreign Ministry spokesperson Lin Jian warned that Washington’s economic campaign could “fuel tensions and lead to risk spillover,” including potential disruption to the international financial order.
Beijing’s response highlights the broader international implications of the Trump administration’s attempt to isolate Iran, particularly as the United States seeks to target revenue streams and economic relationships extending beyond Iran itself.
Iranian President Masoud Pezeshkian responded Tuesday by emphasizing that Tehran remains open to diplomatic negotiations but will not submit to U.S. economic coercion.
Speaking during a central bank meeting, Pezeshkian said Iran’s preferred approach remains resolving disputes through talks.
“Our approach is understanding and resolving issues through interaction and negotiation, but at the same time, we have stood and will continue to stand firmly against economic pressure,” Pezeshkian said, according to the Anadolu Agency.
He said Washington would “gain nothing” from attempting to force concessions through an economic crackdown.
His comments came one day after the formal launch of Operation Economic Outcast and as the administration expanded sanctions and other measures aimed at restricting Iran’s access to international commerce.
Despite the escalating economic confrontation, U.S. officials reportedly do not expect Washington to resume military strikes against Iran immediately unless Tehran launches an attack first.
According to Axios, Secretary of State Marco Rubio has told some foreign counterparts that the administration’s current military posture is expected to remain in place “for the time being.”
One U.S. official cited in the report said Rubio had not ruled out American strikes if Iran initiates an attack.
A second official said the current posture is expected to remain through the midterm elections, after which another military campaign could again be considered.
Secretary of War Pete Hegseth offered a less definitive assessment Monday, saying he was not ruling out renewed U.S. attacks against Iran during the current pause in hostilities, according to The Associated Press.
The administration is instead increasing nonmilitary pressure, including its blockade of Iranian ports and the sanctions initiative announced by Bessent.
Trump also used his Wednesday interview with Beck to address the internal condition of Iran and the status of its leadership.
The president said he believes fear of government snipers has prevented large-scale demonstrations against the Iranian regime.
“They have snipers at the tops of buildings, and people go out to protest and they get hit. And they don’t have to hit many,” Trump said. “When you see five or six or 10 people go down and you have 100,000 or 200,000 people, they leave. No, I don’t care who you are, you leave.”
“And it’s very hard to protest when you have people that are willing to shoot you and kill you. And that’s why they’re not protesting,” Trump added.
Trump suggested circumstances inside Iran could still change.
He claimed Iran’s navy and air force are “totally gone” and said many members of the Islamic Revolutionary Guard Corps are not being paid.
The president also addressed uncertainty surrounding Iranian Supreme Leader Ayatollah Mojtaba Khamenei, who reportedly has not appeared publicly for months.
Trump disputed speculation that Khamenei had died, although he said the Iranian leader had suffered extensive injuries.
“I don’t think he’s dead. He was very seriously wounded. The left side of his body, the arm, the leg, the whole thing. He was very seriously wounded,” Trump said.
Trump was responding to a recent Atlantic article titled “Is Mojtaba Khamenei Dead?”, which noted that Khamenei has not been seen publicly in months, including by some of his closest confidantes.
The president said information reaching him continues to indicate that Khamenei remains involved in government decision-making.
“I don’t think he’s dead. and if he is, they’re putting on a pretty good show because they talk about going back to talk to him all the time to get a final blessing on things,” Trump said.
Mojtaba Khamenei succeeded his father, Ali Khamenei, who was killed during the opening strikes of Operation Epic Fury on Feb. 28, 2026.
The developments leave Washington and Tehran engaged simultaneously on several fronts: economic pressure is increasing, renewed U.S. military action remains possible under certain circumstances, and Tehran continues signaling an interest in negotiations while refusing to yield to economic demands.
At the same time, the potential Hormuz corridor introduces a separate diplomatic track involving Oman that could ease one of the most disruptive consequences of the conflict.
A functioning temporary shipping lane would not resolve the broader confrontation between the United States and Iran, but the drop in crude prices Wednesday showed how strongly markets are responding to signs that commercial traffic through the strait could become more secure.
For now, Iran and Oman are attempting to establish practical arrangements for maritime transit while Washington focuses on cutting Tehran off from international revenue. China, meanwhile, is warning that the U.S. campaign could extend the consequences of the conflict far beyond Iran and create new risks for the global financial system.
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