Why Hormuz remains high risk for ships despite US claims of mine-clearing

Iran's Deputy Foreign Minister announced that Iran is negotiating a deal with Oman that would prohibit military vessels from transiting through the Strait of Hormuz. This agreement aims to manage commercial shipping traffic in the vital waterway, which has been largely shut down since the "Iran war" began. Under the proposed framework, traffic into the Persian Gulf would pass through Iranian waters, while outbound traffic would use a route partly through Iranian and partly through Omani waters. The U.S. administration previously expressed opposition to aspects of this deal. Meanwhile, Israel continued strikes in Gaza, and Dubai International Airport reported a significant drop in passenger traffic due to disruptions from the "Iran war."

Iran and Oman's foreign ministers met in Tehran to discuss a proposed framework for a temporary transit corridor through the Strait of Hormuz and a joint mine-clearing project. Oman's Foreign Minister Badr Albusaidi expressed hope that the two countries would "soon announce" the temporary corridor. The proposed framework includes establishing this joint navigation corridor and an agreement for a mine-clearing project. Technical negotiations will continue to reach an agreement on a permanent navigation corridor and future management of the strait. The ministers emphasized the importance of arrangements respecting their countries' sovereignty.

Iran and Oman have reached an agreement regarding their respective shares of the Strait of Hormuz and its revenues. The Islamic Revolutionary Guard Corps (IRGC) announced on Wednesday that this agreement, reached after weeks of negotiations, is contingent on US acceptance of their conditions. The Strait, which previously handled a significant portion of global oil and LNG shipments, has seen most shipping halted since February due to competing control assertions by Iran and the US. The IRGC stated that the Strait could be reopened if the US ceases its obstruction and returns to a previous agreement, but will remain closed otherwise.

Despite US President Trump's claims of clearing all sea mines in the Strait of Hormuz, analysts suggest shipping remains high-risk. Iran's Deputy Foreign Minister stated the strait remains closed and that only Iran knows the mine locations, dismissing Trump's comments as market-calming. While the US assessment of mine clearance in key lanes is considered credible, analysts warn of potential remaining uncharted mines and Iran's capability to lay more. The ongoing conflict and sanctions contribute to heightened uncertainty, significantly increasing war-risk insurance costs for vessels. Experts believe these costs will deter many shipping companies from resuming normal transit through the strait.

Iran and Oman have agreed on a temporary maritime shipping corridor in the Strait of Hormuz, announced Iran's Deputy Foreign Minister Kazem Gharibabadi. This route, which will be 7 miles wide and partially traverse Iranian territorial waters, is a temporary measure and does not signify a full reopening of the strait. The waterway has been largely closed to shipping since early March due to conflict between the US and Iran, causing global energy market crises. The agreement with Oman comes as broader peace negotiations between Iran and the US have stalled following a lapsed interim peace deal signed in June. Key details regarding the route's precise coordinates, operational protocols, and revenue generation remain unclear.

Iran maintains that the Strait of Hormuz remains closed, despite an agreement with Oman regarding transit routes. Former US envoy Joey Hood suggests shipping companies are accepting the risk of passage rather than halting operations, believing Iran cannot target all vessels. He noted that US aircraft carrier deployments have returned to normal rotations after an extended period in the region, indicating the pressure campaign, including naval blockades and economic sanctions, continues. These sanctions, in place for over 40 years, have become increasingly stringent.

Iran faces a strategic dilemma regarding the Strait of Hormuz, as its value as a chokehold is diminishing. Neighboring Gulf states are developing alternative pipelines, reducing reliance on the waterway. This shift is prompting internal debate in Iran, with some officials advocating for a swift negotiated deal to avoid further economic vulnerability from potential US sanctions. Concerns are mounting over the economic consequences of continued conflict, with leaders emphasizing the need for peace and economic stability. Analysts suggest that Iran's constant threat to close the strait is eroding its leverage, forcing a reconsideration of its strategy to ensure passage safety and stability.