TEHRAN, Aug 29: Iran has agreed with Oman on a proposed route for ships to pass through the Strait of Hormuz and could reopen the strategic waterway if the United States fulfils commitments outlined in a memorandum agreed in June, Iranian President Masoud Pezeshkian said on Saturday.
Pezeshkian said the shipping route had been discussed with Oman and communicated to Iran’s Supreme Leader as Tehran works towards restoring commercial traffic through the strategically important waterway.
“We agreed with Oman on the passage route through Hormuz, and if the US fulfils its commitments under the memorandum of understanding, we will open the strait,” he said, according to Iran’s official IRNA news agency.
He said Tehran expected Washington to implement provisions involving the lifting of sanctions and the blockade, the release of frozen Iranian assets, investment in Iran and an end to the war in Lebanon.
Pezeshkian indicated that discussions with the United States had progressed to the point where both sides were considering a return to the earlier memorandum.
“As far as the talks have progressed, they also accept that we must return to the memorandum of understanding,” he said.
The development could provide a possible framework for restoring commercial shipping through the Strait of Hormuz, a crucial global energy corridor whose disruption has affected trade and transport amid the ongoing conflict.
Pezeshkian said Iran’s Supreme National Security Council had reached an “exceptional” consensus on the agreement, with 12 of its 13 members supporting it.
According to the Iranian president, sanctions and the blockade were initially eased under the memorandum, while discussions began on releasing Iranian funds held abroad. Investment plans worth around USD 300 billion were also drawn up.
However, Pezeshkian said Iran’s imports and exports later declined by between 25 and 35 per cent after the arrangement broke down.
He claimed banking and petrochemical sanctions had been removed while the agreement remained in force and said Iran exported nearly 90 million barrels of oil during that period.
Tehran had also discussed investment opportunities with Qatar and the United Arab Emirates, but Pezeshkian said those projects could not progress while the conflict continued.
Iran has been working with Oman on arrangements for managing maritime traffic through the waterway since the US-Iran memorandum collapsed last month.
Under the June understanding, Washington and Tehran had agreed to extend an April ceasefire and gradually restore shipping through the Strait of Hormuz to prewar levels while continuing negotiations on a broader settlement aimed at ending the conflict that began in February.
Pezeshkian also highlighted mounting energy challenges inside Iran, saying the conflict had disrupted transport links, restricted imports and reduced government revenues.
“We are in a state of war. First, we must understand that we are at war,” he said, while warning that gasoline supplies remained a significant concern because blocked routes were making it difficult for goods to enter the country.
The Iranian government has yet to decide whether fuel prices will increase or determine the extent of any rise, he said. The proposal currently under consideration involves introducing a third pricing tier for fuel consumed beyond the standard quota.
Pezeshkian said the proposed rate for the additional quota was around 10,000 tomans, or approximately USD 0.05, rejecting reports that the price could reach 50,000 tomans.
Any change in fuel pricing would require consultations with parliament and the judiciary, he added.
The president urged citizens to make greater use of public transportation as attacks on power plants and oil and gas infrastructure have reduced energy production.
The government is also considering broader remote working arrangements, expanded public transport, tighter vehicle efficiency standards and the conversion of taxis and motorcycles to electric power.
The measures are intended to reduce fuel consumption while limiting the impact of the energy crisis on households.