Blow to Donald Trump as Iranians strike deal to police Strait of Hormuz

Donald Trump faces a diplomatic setback after Iran and Oman reached a deal to jointly manage shipping through the Strait of Hormuz, one of the world's most important oil transit routes. The prospective agreement would give Iran control over inbound shipping, with outbound traffic overseen jointly by Iran and Oman, leaving Western vessels dependent on Iranian cooperation to pass through. This comes after five months of regional conflict and leaves Washington in a weaker strategic position than before the crisis began, with allies in the Gulf and Israel voicing alarm at Iran's growing influence over the waterway.

Roughly 20 per cent of the world's oil and liquefied natural gas normally passes through the Strait, but traffic has stalled since February as insurers pulled cover for tankers amid fears of Iranian attacks. Iranian spokesman Esmaeil Baqaei said the route's coordinates had been agreed and a joint statement was in its final drafting stage, though the deal excludes tolls or fees on shipping for now. US Secretary of State Marco Rubio described the Hormuz arrangement as separate from broader nuclear negotiations with Iran, while the agreement followed Trump's decision to shelve a major planned offensive at Saudi Arabia's request, with Qatar continuing to mediate; Israel, meanwhile, said it had been "left in the fog" after air strikes it expected to join were cancelled.