New terms are being drafted between the US and Iran to update an initial framework reached in June, with a focus on clauses related to traffic in the Strait of Hormuz, a Pakistani source told The National.
Intermediaries are "currently working on drafting an updated MoU", the official said, referring to the June 17 memorandum of understanding between the US and Iran that laid out the terms for reopening the strait and negotiations for a permanent ceasefire during a 60-day pause in hostilities.
“Messages are being passed. Indirect talks are in an advanced stage,” the official said about discussions on the proposal. The focus was on “opening the Strait of Hormuz and keeping it open”, they added.
Pakistan has been acting as mediator for the talks, exchanging messages between Washington and Tehran, while Qatar and Oman have also been involved in efforts to assist communication and move proposals between the two sides.
Axios reported, citing two regional sources and a US official, that the proposal under discussion would establish an initial 60-day arrangement which could later be extended.
Under the interim plan, inbound traffic would use a northern lane through Iranian waters, while outbound vessels would use a southern lane through Omani waters in co-ordination with Iran. No tolls or fees would be charged during the temporary period.
"The parties would work on clearing naval mines from the median lane of the strait within 30 days," Axios said. The proposal follows comments from Iranian state media that future arrangements could include a "middle corridor" through the waterway.
On Tuesday, US President Donald Trump said Washington and Tehran were engaged in “very good discussions”, but warned Iran it would face severe consequences if it backed away from a potential deal.
Separately, he told reporters that talks with Iran are “moving along nicely”.
“We'll know in 48 hours,” he said.
US officials also signalled progress. Secretary of State Marco Rubio said there had been "progress made" while adding there was "not finality yet". Treasury Secretary Scott Bessent said a deal could come within the next day or two to "open the strait and move towards a more normalised position in this conflict".
The possibility of an agreement pushed oil prices lower, with Brent crude falling below $79 a barrel on Wednesday. The last time prices fell below $80 was in July, before hostilities resumed.
But while the Trump administration expects a breakthrough to be reached within days, the talks still face hurdles.
“The US wants assurances about 'all sea lanes' being kept open for trade and passage,” the Pakistani source said.
"The Iran-Oman talks and middle corridor are the focus of the new deal, but there are lots of arguments about details. GCC countries would prefer everything to be explicit in any agreement," the official told The National.
An Iranian media outlet linked to the Islamic Revolutionary Guard Corps said Mr Trump's threats to resume attacks were slowing negotiations. Citing an Iranian source, Sepahnews said the “main reason” for delays in reaching an understanding with Oman was “America’s interference and Trump’s threats”.
The Iranian source said negotiations could not move forward while Tehran faced the prospect of military action.
“As long as US interference and threats of military attack against Iran continue, the agreement will be delayed,” the source was quoted as saying.
The official added that Iran would not accept any arrangement “under the shadow of threats”.
There are issues to be addressed beyond the direction of the sea routes. Iran has repeatedly raised the prospect of charging tolls on shipping, a proposal rejected by Gulf states and the US. Iranian Deputy Foreign Minister Kazem Gharibabadi has said that the strait "will never return to its pre-war state".
A leaked Omani proposal that emerged last week called for voluntary fees to help fund the cost of navigation and services including search and rescue. There are similar arrangements for the Strait of Malacca, a trade route in South-East Asia.
Mr Trump had accused Iran of being “duplicitous” in the process. Over the past few days, Iranian Foreign Minister Abbas Araghchi has spoken with officials in Oman, Saudi Arabia, Iraq and Pakistan – in some cases more than once.
The talks follow an earlier preliminary understanding reached in mid-June that helped establish a fragile ceasefire and created a framework for 60 days of broader negotiations. That arrangement later unravelled after Iran attacked oil tankers in and around the Strait of Hormuz, triggering renewed exchanges of fire.
Yemen's Iran-backed Houthis have been carrying out attacks in the Red Sea, mainly on Saudi-flagged vessels, but it remains unclear whether that issue will be directly addressed in the updated preliminary agreement. The "blockade" announced by the Houthis could worsen the energy crisis as countries including Saudi Arabia had turned to the Red Sea as an alternative route to Hormuz.
