Oil Extends Decline As Rubio Rules Out New Strikes, Iran-Oman Transit Deal Nears Finalization

An IRGC spokesman has announced Wednesday that Iran and Oman have reached agreements on their share of the Strait of Hormuz and its revenues, according toTasnim news agency. So essentially the "fee" scheme has been set. There's talk of reopening the strait on an "interim" basis, Bloomberg says.

"We entered into negotiations with Oman about a month ago and have reached results that have been accepted by both sides," the official said. "Agreements have been reached on the share of each country in the waters of the strait and the share of Iran and Oman in its revenues," the statement continued, while also alleging that negotiations were previously delayed only due to the US obstructing negotiations.

Tehran is still insisting on the United States lifting its naval blockade of the country's ports. However, it seems that for now at least Tehran is open to some level of negotiations, or at least seems content to see where this current period of rare calm leads.

This is evident in the latest words of Iranian Parliament Speaker Mohammad Bagher Ghalibaf, who argued Wednesday that any negotiations with the US don't equate to retreat from Iran's demands.

"Negotiation, in my view, has neither intrinsic value nor is it a taboo; it is neither absolutely good nor absolutely evil," he wrote in a letter responding to more hardline critics, IRNA reports.

He insisted this does not mean abandoning resistance to US-Israeli aggression. "If necessary, dialogue, too, according to this logic, is the same arena of struggle and resistance; neither a replacement for it nor a sign of retreat from it," he said.

Ghaliban further suggested this is being done by the Islamic Republic from position of strength while holding on to the nation's "dignity, wisdom and interests."

Meanwhile, it seems Washington is also in no mood to rush back into military action, following the Monday announcement by Scott Bessent of the Economic D-Day action against Iran, which is to including secondary sanctions on any country found not complying.

On Wednesday, Secretary of State Marco Rubio told several foreign officials in recent days that "for the time being" the US is not planning to initiate any new strikes against Iran, but instead the focus is on other means of pressure, especially the sanctions initiative, Axios reports. According to more:

• The U.S. official said that while Rubio made clear that the U.S. isn't planning a return to major combat operations, he didn't rule out strikes if Iran attacks first.
• Another U.S. official said the clearing of mines from the Strait of Hormuz by the U.S. Navy is a watershed moment in the war, largely neutralizing one of Iran's main sources of leverage.

Also on Wednesday, Iranian Foreign Minister Abbas Araghchi and his Omani counterpart Badr Albusaidi confirmed their further work on the “interim framework” aimed at resuming shipping through the Strait of Hormuz, according to a joint statement.

State television has indicated Iran and Oman agreed that the new transit corridor would enter through Iranian territorial waters, with part of the exit route also passing through them. The corridor will span roughly seven miles.

On this and other headlines, oil prices continue to fall...

• Oil extends declines as Iran, Oman continue finalizing talks to reopen Hormuz
• Satellite image shows surge in Iraq’s Persian Gulf oil loadings

A busy day in the Gulf of Oman, where there are at least fifteen sets of STS transfer sessions taking place. We count 25 million barrels of crude oil; plus some refined products. The oil originates from almost every country in the region, minus Iran.#OOTT #IranWar #Tankers pic.twitter.com/TAba26mJiW

— TankerTrackers.com, Inc. (@TankerTrackers) August 25, 2026

The day prior, on Tuesday, President Trump hinted that military options are still on the table. While announcing the new claim that all mines had been detonated or removed from international waters of the Strait of Hormuz, he said the US Space Force was watching "every square inch" of the Strait, and that "There is ⁠a Zero Tolerance policy ‌on mine ‌placement in full force and ​effect." But Iran is still asserting that the strait remains "closed".