A possible agreement between Iran and Oman over the Strait of Hormuz could be a “very bad outcome” for the U.S., a former defense secretary said, as President Donald Trump remains involved in talks to reopen the Middle East waterway.

An agreement between Iran and Oman on a new mechanism to govern shipping in the Strait of Hormuz would not necessarily mean the reopening of the key waterway, Tehran said on Saturday. Before the

Follow The Hindu LIVE for the latest updates on the West Asia war, as the U.S. expects a deal that could lead to the reopening of the Strait of Hormuz, and Houthi rebels have attacked a military camp held by the Saudi-backed Yemeni government.

Crude oil prices rose Thursday after Iranian state news published a draft plan with restrictive conditions for ship traffic in the Strait of Hormuz.

The war in the Persian Gulf has taken another turn as a new alliance has come to pass in West Asia. Saudi Arabia, Pakistan and Turkiye, three largely Sunni-Muslim nations, have come together to make defence pact amid rising escalation and threats from Iran.

In June, Iran and the US signed a Memorandum of Understanding (MoU), aiming to stop fighting, reopen the Strait of Hormuz, and reach agreement to end the war within 60 days. The deal quickly fell through, as did diplomatic talks, with tit-for-tat attacks resuming just days after the MoU was signed.

An ADNOC vessel was hit by a missile while navigating the Strait of Hormuz, generating heightened tensions amid the Iran-US-Israel conflict. Fortunately, no injuries were reported.

Iran's parliament is reviewing a plan to ban ships linked to the U.S., Israel and other "hostile countries" from transiting the Strait of Hormuz. The Trump administration has rejected the plan.

According to our “Hormuz dependency dashboard”, Iran could indeed monetise the strait. It would be exceedingly difficult to reroute shipments of refined petroleum products or liquefied natural gas. And many of Iran’s Gulf neighbours depend on the waterway for imports such as food.

There are competing routes through the strait and what’s on the table appears to involve merging them – with Iran retaining a level of control that would be at odds with US wishes.

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