Iran and Oman are approaching a deal to secure safe transit through the Strait of Hormuz and future administration of the vital economic artery.

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The Gulf nations said in a joint statement on Tuesday that their respective foreign ministers had discussed a “proposed framework” to establish “a joint temporary navigational corridor through the Strait of Hormuz and an agreement to implement a joint project to clear the Strait of mines.”

Oil prices have extended recent losses in response to the statement, with international benchmark Brent Crude falling below the $90 per barrel market overnight.

Just five commodity vessels transited the Strait of ‌Hormuz on Tuesday, below the ⁠10-day average of 15, according to preliminary data from Kpler. Roughly a fifth of global crude flows typically flowed through the Strait before the Iran conflict.

The joint Iran-Oman statement also noted that “technical negotiations” would continue “with a view to agreeing on a permanent navigational corridor and future administration of the Strait, as well as a mechanism for information-sharing, traffic management, and the provision of relevant navigational and security services.”

Contributing to pressure on oil prices in recent days, the U.S. has reportedly started returning its diplomats to Gulf states – suggesting Washington does not currently expect military escalation. Russia’s RIA Novosti also reported late on Tuesday that the U.S. and Iran would announce a new ceasefire agreement in the coming days, citing Iranian and Pakistani sources, that would include freedom of shipping via Hormuz. However, this could not be independently verified, and the White House did not respond to MS Now’s request for comment.

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It comes after Treasury Secretary Scott Bessent’s pledge on Monday to launch an “economic D-day” on the Iranian regime, threatening to target Tehran’s “enablers” and trading partners in efforts to strangle its economy. This included a list of 60 individuals, entities and vessels.

However, the U.S. has so far held off on imposing significant secondary sanctions on other nations — including, significantly, Chinese financial firms suspected of facilitating Iran’s oil trade.

“Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure ​period, but they should know that that will move very quickly and that we are serious,” Bessent said on Monday.

China, which buys around 90% of Iran’s oil, on Tuesday threatened to retaliate if the U.S. opted to expand economic pressure on nations trading with Tehran.

Beijing “will take all necessary measures to firmly safeguard its rights and interests,” a Chinese foreign ministry spokesperson said on Tuesday.

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