US Removes Sanctions on Iranian-Linked Iraqi Airlines Amid Strait of Hormuz Negotiations

Significant progress has been made in talks between the United States and Iran regarding the Strait of Hormuz. On August 5, 2026, the US Treasury Department announced it had lifted sanctions on two aircraft and three Iraqi airlines connected to Iran's Islamic Revolutionary Guard Corps. Concurrently, an Iranian Foreign Ministry spokesperson stated that Iran and Oman had agreed on the "geographical characteristics" of shipping routes through the Strait, with a joint statement nearing finalization unless "certain third parties" interfere, a likely reference to the US and Israel.

Despite this, Iranian officials clarified that the agreement with Oman does not guarantee safe passage through the Strait. The negotiations focus on reopening the strategically vital waterway, which Iran has effectively closed since recent US and Israeli attacks. Three potential shipping routes have emerged: Iran’s preferred route, which it insists is the only safe passage; an Oman-proposed route along the Omani coast supported by the UN’s International Maritime Organization; and the pre-conflict central route, now deemed dangerous due to Iranian mine-laying.

Israeli Prime Minister Benjamin Netanyahu, speaking at the burial ceremony of Zionist leaders Theodor and Rebecca Herzl, acknowledged US President Donald Trump as a strong ally but emphasized Israel’s security is non-negotiable. Trump earlier expressed optimism about ongoing discussions with Iran but reiterated threats to severely punish Iran if it reneges on agreements. A Gulf source told CNN there is a 50-50 chance of a deal by Friday, though Iran’s Revolutionary Guards must approve any temporary accord.

Iran denies direct talks with Washington, maintaining communication only with Oman to coordinate navigation through the Strait. The reopening of shipping lanes is a key bargaining chip for Iran and could revive stalled US-Iran negotiations. The Strait of Hormuz remains critical as it channels about 20% of the world’s energy supply, and its closure has heightened regional tensions and military confrontations.