Iran, Oman Reach Preliminary Deal on Hormuz Strait Boundary and Revenue Sharing

The Islamic Revolutionary Guard Corps (IRGC) issued a statement today indicating that Iran and Oman have reached a preliminary agreement on revenue sharing and the delimitation of their respective maritime zones for the Strait of Hormuz, the most important sea corridor in the Persian Gulf, while negotiations continue on the specific conditions for reopening the waterway. The move comes amid escalating regional conflict and serious threats to shipping safety, introducing a degree of uncertainty into international energy markets.

The IRGC was established in May 1979 by the late leader Ruhollah Khomeini to protect the political system and ideology of the Islamic Republic. Its organization comprises five service branches—ground forces, aerospace force, navy, Quds Force and Basij militia—with a total strength of roughly 125,000 personnel and reports directly to Iran’s Supreme Leader. In addition to conventional defence duties, the IRGC is tasked with preventing foreign interference, suppressing possible military coups and cracking down on political movements deemed “heretical,” giving it a pivotal role in Iran’s domestic and foreign policy.

The Strait of Hormuz carries about one‑third of global oil exports and is the sole sea route linking the Persian Gulf with the Gulf of Oman. In recent years the strait has repeatedly been the scene of military frictions between the United States and Iran, as well as missile and drone attacks by Yemen’s Houthi forces, sharply raising the risk to vessel passage. Recently, the war in the Middle East has prompted several navies to increase patrols; some tankers have been forced to reroute or suspend voyages, causing fluctuations in international oil prices. The Iran‑Oman agreement aims to reduce the potential for disputes by clearly delineating maritime zones and sharing revenues, thereby creating conditions for the restoration of normal shipping.

According to the IRGC, the parties will allocate transit fees and revenues from seabed resource extraction in proportion to their respective territorial waters and exclusive economic zones (EEZs). Negotiations remain ongoing on issues such as maritime security guarantees, vessel inspection procedures and restrictions on external military forces. The U.S. Navy Command has said it will continue to monitor the situation and urges all parties to comply with international maritime law; Saudi Arabia and the United Arab Emirates have also expressed concern, fearing that the agreement could alter the regional energy supply power balance.

For Taiwan, shipping safety in the Strait of Hormuz directly influences global crude oil and liquefied natural gas price trends, which in turn affect the island’s energy import costs. If the agreement facilitates smooth passage through the strait, it could help stabilise oil prices in the short term and reduce volatility in energy costs; conversely, a breakdown in negotiations or an escalation of conflict could exacerbate global energy supply tightness, triggering chain reactions for Taiwan’s supply chains and inflationary pressure. Moreover, the cooperative model between Iran and Oman on maritime delimitation offers Taiwan a reference case for multilateral negotiation and revenue‑sharing in resolving maritime disputes in the South China Sea or other waters.