Iran and Oman have signalled that they are close to reaching an agreement on arrangements for commercial navigation through the Strait of Hormuz, raising hopes of a breakthrough in the crisis that has disrupted one of the world's most important energy corridors.
Global air cargo rates fell in July as the conflict involving Iran pushed up jet fuel costs and disrupted supply chains, while new European Union import rules further weakened shipments from China and Hong Kong to Europe, according to WorldACD Market Data.
Gulf tensions remain high despite signs of diplomatic progress over the Strait of Hormuz, with Saudi Arabia warning of imminent coordinated attacks by Iran-backed militias even as Tehran and Muscat move closer to an agreement aimed at restoring commercial shipping through the strategic waterway.
Iran and Oman have moved closer to an agreement on reopening the Strait of Hormuz to commercial shipping, with both sides agreeing on the geographical coordinates of a proposed safe navigation corridor, even as conflicting messages over possible US-Iran negotiations continue to cloud prospects for a broader diplomatic breakthrough.
Oil prices recovered on Tuesday after suffering their steepest one-day decline in weeks, as persistent concerns over potential supply disruptions in the Middle East outweighed optimism that diplomatic efforts could quickly end the five-month-old conflict between the United States and Iran.
Uncertainty over the future of the Strait of Hormuz deepened on Saturday as the United States and Iran traded conflicting claims over control of the strategic waterway, while commercial shipping remained severely disrupted and fresh attacks added to mounting concerns over the security of Gulf trade.
Iran called on the US to accept defeat while President Donald Trump blasted Tehran as 'very evil' and told Americans to brace for continued high fuel prices as progress toward peace talks and oil tanker traffic through the strategic Strait of Hormuz gateway remained halted, said a report.
Two ADNOC vessels were attacked while transiting the Strait of Hormuz on Thursday, adding to growing tensions in the strategic waterway as the United States prepares tougher economic measures against Iran.
The Middle East conflict is widening into an increasingly complex security, shipping and environmental crisis, with an oil slick from a grounded tanker reaching Oman's coastline just as Iran signals that it may be prepared to sustain its confrontation with the United States for years.
The Strait of Hormuz is "under Iran's control and management", the recently appointed head of Iran's Basij paramilitary unit said on Thursday, a day after US President Donald Trump said the United States had "total control" of the strategic waterway.
