Iran and Oman have conducted months of bilateral consultations on managing commercial transit through the Strait of Hormuz, including proposals for new shipping routes and temporary safe passages that grant Tehran greater oversight of entry and exit points. These talks, which recently reached in-principle agreements on coordinates and revenues but faced resistance from other GCC states and the United States, occur amid ongoing 2026 Iran war hostilities. Iranian drone and missile strikes have already hit Omani ports such as Duqm and Salalah, facilities used by U.S. forces, with additional attacks reported on vessels in Omani territorial waters of the Gulf of Oman. Recent U.S. strikes on Iranian-affiliated vessels, Iranian naval deployments east of Hormuz, and a new Iranian defense minister appointment have sustained escalation signals. Trader consensus on near-term targeting reflects these maritime frictions, blockade enforcement, and unresolved sovereignty concerns over the waterway rather than broader diplomatic breakthroughs.