Iran said Sunday it is not negotiating directly with the United States and will not return to formal talks until Washington meets key demands — making clear that a possible shipping agreement with Oman does not mean the Strait of Hormuz is reopening. 

That distinction is now the most important part of the story for oil markets, shipping companies and businesses around the world.

Iranian Foreign Minister Abbas Araghchi said Tehran and Oman are close to completing an agreement governing shipping routes through the strait. But he said reopening Hormuz is a separate issue tied to broader negotiations with Washington. 

In simple terms: Iran and Oman may agree on where ships can travel, while Iran still decides which ships are allowed through.

Tehran is demanding major U.S. concessions before restoring full access, including an end to American economic and military pressure and compensation connected to the conflict. Iran says messages are still being exchanged through intermediaries rather than direct U.S.-Iran negotiations. 

The Strait of Hormuz is one of the world’s most important energy routes, historically carrying roughly one-fifth of global oil and gas shipments. Traffic has been severely disrupted since the U.S.-Israeli war with Iran began February 28. 

The Trump administration remains more optimistic.

Vice President JD Vance said Saturday that Washington is still talking with Iran and is focused on getting as much oil and gas as possible moving through Hormuz. He described the negotiations as still being in the “middle of the game.” 

But Iran’s latest comments show how large the gap remains.

A technical agreement with Oman could therefore produce headlines suggesting progress without actually restoring normal commercial shipping.

That matters because continued disruption keeps pressure on oil prices, tanker availability, freight costs and war-risk insurance throughout the Gulf.

Regional tensions also worsened Sunday when Iran-backed Houthi forces said they attacked Saudi Aramco’s Jazan refinery. Saudi authorities said a fire at the facility was extinguished without casualties. 

For businesses, the takeaway is straightforward:

Do not mistake an Iran-Oman shipping agreement for the reopening of Hormuz.

The real breakthrough comes only when commercial vessels can again move freely through the strait. Iran is now making clear that this requires a much larger political agreement with Washington — and that agreement has not been reached.

Until then, one of the world’s most important shipping routes remains a major risk for energy prices, transportation costs and global trade.

JBizNews Desk | Tehran

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