Iran war news Highlights: Oman, Iran propose temporary joint navigation corridor through Strait of Hormuz

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Oman and Iran agree framework to restore safe navigation through Strait of Hormuz

Omani Foreign Minister Badr bin Hamad Al-Busaidi visited Iran and held consultations with Iranian Foreign Minister Abbas Araghchi.

The discussions centred on restoring safe navigation through the Strait of Hormuz while respecting the sovereignty and sovereign rights of both countries.

Oman and Iran discussed a phased plan aimed at providing a practical basis for reopening and managing navigation through the Strait.

The proposed framework includes creating a temporary joint navigation corridor through the Strait.

The two countries agreed in principle to work on a joint project to clear mines from the Strait.

Technical negotiations will continue on establishing a permanent navigation corridor and future arrangements for managing the waterway.

The two sides also discussed providing related navigational and security services.

Washington is starting to send personnel back to some Middle Eastern diplomatic missions that were evacuated or downsized amid tensions with Iran.

Staff will return to missions in Lebanon, Israel, Saudi Arabia and Baghdad, Iraq, according to people familiar with the matter cited by Reuters.

Family members of US diplomatic personnel will also be permitted to return to the US mission in Riyadh.

The move suggests Washington believes the immediate risk of further escalation in the Iran conflict has declined.

Some missions will initially operate with reduced staffing rather than returning immediately to full capacity.

US President Donald Trump said all mines in international waters of the Strait of Hormuz have been removed or detonated.

Trump claimed Iran had been notified that any ship or boat laying new mines would be destroyed.

The warning comes amid heightened tensions between the US and Iran over the strategically vital waterway.

The Strait of Hormuz is a major global energy route, carrying a significant share of the world's oil and gas shipments.

Long queues formed at petrol stations in Tehran after the US announced fresh sanctions aimed at putting economic pressure on Iran.

Washington has shifted toward economic pressure after six months of war, with military operations reaching a stalemate and peace talks stalled.

Most traffic through the Strait of Hormuz remains blocked, adding to Iran's economic difficulties.

US Treasury Secretary Scott Bessent said Washington's goal was the “economic asphyxiation” of Iran and to sever the regime's economic lifelines.

Iranian residents said sanctions could worsen prices and living costs, despite the country's long experience with US restrictions.

Tehran was already facing very high inflation before the war.

Global stocks and bonds stabilised on Tuesday as investors largely shrugged off the latest US plans to expand sanctions against Iran.

US Treasury Secretary Scott Bessent warned countries to cut financial ties with Iran or face secondary sanctions.

The Treasury Department, however, stopped short of imposing immediate penalties, easing fears of a sharper market reaction.

Oil prices fell more than 3% on Tuesday, hitting their lowest level in a week.

Brent crude dropped 3.33% to $89.10 a barrel, while WTI fell 3.45% to $82.08.

Both benchmarks touched their lowest levels since August 17.

Traders largely shrugged off the latest US sanctions on Iran, seeing economic pressure as less likely to disrupt oil supplies than military escalation.

Iraq could face a bigger economic blow than Iran from the latest US sanctions campaign against Tehran, Iraqi lawmaker Jamal Kocher warned on Tuesday.

Kocher, a member of Iraq's parliamentary finance committee, said Baghdad could face serious consequences if it fails to comply with Washington's sanctions.

"Iranian society has faced conditions caused by sanctions for years, while Iraqi society does not have the same readiness to withstand such pressure," Kocher said.

Iraq's close economic ties with Iran could make it particularly vulnerable. Kocher said the Iraqi market relies heavily on Iran and Turkey, while new US restrictions could disrupt trade and imports, especially Iranian gas.

Despite its close political relationship with Tehran, Iraq also depends on a US-influenced financial system for oil revenues, gold imports and banking transactions.

The situation could leave Baghdad caught between maintaining vital economic ties with Iran and avoiding US sanctions that could put further pressure on its already vulnerable economy.

Qatar has called for an agreement between the parties involved in the Iran-related tensions while stressing that it does not take sides, the Foreign Ministry spokesperson said during a press briefing.

The spokesperson said Qatar’s priority is to reach a negotiated agreement and that Doha does not support one party against another.

However, Qatar also criticised Iran’s actions in the Strait of Hormuz, saying Tehran’s closure of the strategic waterway violates the freedom of navigation guaranteed under international law.

At the same time, Doha issued a warning that it remains prepared to defend itself against potential threats.

“Our armed forces and all our institutions in Qatar are ready to respond to any threat from any party whatsoever,” the spokesperson said.

Qatar considers US sanctions on Iran to be unilateral and supports efforts to resolve the issue through mediation, Reuters reported on Tuesday, citing a Qatari foreign ministry spokesperson.

The spokesperson said Qatar backs diplomatic efforts aimed at finding a solution through mediation, signalling Doha’s preference for dialogue over further economic pressure on Tehran.

Qatar’s position comes as the United States continues to increase pressure on Iran through sanctions targeting its economy and businesses accused of supporting Tehran.

The Gulf state has previously positioned itself as a mediator in regional disputes and has supported diplomatic channels to help ease tensions involving Iran.

By backing mediation, Qatar is calling for a negotiated solution rather than measures it views as unilateral action against Tehran.

China has warned the United States that it could retaliate if Washington expands sanctions targeting Chinese companies linked to Iran, the Financial Times reported on Tuesday.

The warning comes after the Trump administration announced fresh sanctions against companies in Hong Kong and mainland China over their alleged ties to Iran. However, Washington stopped short of imposing measures on major Chinese financial institutions, according to the report.

Beijing’s response signals growing tensions between the two countries as the US increases economic pressure on Iran and targets businesses accused of helping Tehran circumvent sanctions.

China remains one of Iran’s key economic partners, particularly in energy and trade. Any expansion of US sanctions against Chinese companies could therefore further strain already tense US-China relations.

Iranian lawmaker Ebrahim Azizi criticised the government on Tuesday for not attending parliamentary committee meetings on proposed legislation concerning the Strait of Hormuz.

“Now that we are reviewing the Strait of Hormuz bill, no one from the government attends the National Security Committee meetings,” Azizi said.

The Iranian parliament is advancing legislation aimed at tightening Tehran’s control over shipping through the strategic waterway.

US Treasury and State departments launched “Operation Economic Outcast” on Monday, targeting Iran’s oil, petrochemical, shipping, digital asset and military procurement networks. The sanctions also named four India-based companies and an Indian national, alongside dozens of international intermediaries.

China said on Tuesday it would safeguard its interests after Washington laid out plans for the "economic asphyxiation" of Beijing's economic partner Iran, issuing penalties on some entities including in China and expanding secondary sanctions threats.

“China's cooperation with Iran always done under framework of international law,” says China's foreign ministry on US Iran-related sanction threats.

German growth rose faster than previously thought in the second quarter thanks to strong exports, official data showed Tuesday, as Europe's biggest economy defied the turmoil unleashed by the Iran war.

Gold prices on Tuesday dropped by ₹120 to ₹1,63,109 per 10 grams in futures trade amid a fall in spot demand.

As mystery continues to shroud the appearance of Ayatollah Mojtaba Khamenei, Al Arabiya reported that Iran's Fars News released archival footage of the Iranian Supreme Leader. According to Al Arabiya, the footage was reportedly filmed before Khamenei became the Supreme Leader.

Market benchmark indices Sensex and Nifty declined in early trade on Tuesday amid renewed escalation in the US-Iran standoff and elevated crude oil prices.

The 30-share BSE Sensex was down 30 points to 77,336.32 in early trade. The 50-share NSE Nifty dipped 38.80 points to 24,179.50.

Asian refiners are on course to nearly double their purchases of US crude for September from a month earlier, a move that stands to squeeze domestic fuel makers at a time when Americans are already facing record high pump prices.