Iran and Oman Draft Protocol to Monitor Strait of Hormuz, Markets React

Iran and Oman are drafting a joint protocol to monitor ship traffic in the Strait of Hormuz, one of the world’s most important oil shipping routes.

Iran’s state news agency, IRNA, reported on Thursday (2 April 2026) that the move aims to regulate and oversee the movement of tankers passing through the area.

Iran’s Deputy Foreign Minister for Legal and International Affairs, Kazem Gharibabadi, stated that tanker traffic through the strategic route needs to be “monitored and coordinated” jointly by Iran and Oman.

“This requirement is not intended as a restriction, but to facilitate, ensure maritime safety, and provide better services for ships using this route,” Gharibabadi said, quoted from IRNA.

The news immediately impacted global financial markets. The US stock indices, which had plunged sharply on Thursday morning, reversed course and strengthened after the report emerged.

Meanwhile, world oil prices, which had spiked sharply, began to ease following signals of cooperation between Iran and Oman. Markets see potential for the Strait of Hormuz to reopen, at least partially, without the need for military intervention.

The Strait of Hormuz is a vital route for global oil distribution. Since the conflict began on 28 February 2026, following US and Israeli attacks on Iran, the route has been effectively closed.

Iran’s blockade in the area triggered a historic surge in oil prices and caused chain reactions on the global economy.

“We don’t need it, and we really don’t need it,” Trump said in his state of the union address on Wednesday night.

However, data shows that petrol prices in the US have still risen more than 30% in the past month, even breaking above 4 US dollars per gallon for the first time in several years.