Iran’s economy remains structurally dependent on the oil sector, which serves as a primary source of revenue and influences foreign relations. This reliance is rooted in historical developments dating back to the early 20th century, following initial discoveries in the Masjid-i-Suleiman region.

Iran and Oman reach Hormuz deal, but reopening hinges on US compliance The Revolutionary Guards said the waterway ‘will not be opened under any circumstances’ if Washington failed to accept the demands Iran and Oman have reached agreement on their share of the Strait of Hormuz and its revenues, but the vital waterway will not be reopened if the US does not accept their conditions, Iran’s Revolutionary Guards said on Wednesday.

Iran and Oman have held on-and-off talks for weeks about controlling traffic through the strait, which handled one-fifth of global oil and liquefied natural gas shipments before the war began in February. Most shipping has since been shut down, driving global energy prices higher, as Tehran and Washington have tried to assert control over the channel, imposing separate blockades.

“The Strait of Hormuz belongs to Iran and the country of Oman … We have been in negotiations with Oman for about a month, and we have reached results that are acceptable to both sides,” Islamic Revolutionary Guard Corps spokesman Hossein Mohebbi said in comments published by Iranian state media.

“In these negotiations, agreements have been reached regarding the share of each country in the waters of the strait and the share of Iran and Oman in its revenues,” Mohebbi added. The IRGC accused the US of seeking to obstruct the negotiations between Iran and Oman and said this had caused the agreement to be delayed.

“If the United States stops obstructing and returns to the agreement, we can open the Strait of Hormuz within the framework of the agreement reached … If the United States does not accept our conditions, the Strait of Hormuz will not be opened under any circumstances,” Mohebbi said.

According to an opinion piece by CGTN commentator Wang Jin, US sanctions against Iran are alleged to have negative regional and global economic repercussions. The article states that Iran's economy has deteriorated since late February 2026, with the rial reportedly falling below 2 million per US dollar and prices rising, though these specific figures and the conflict timeline are not independently verified.

"Can economic sanctions succeed in subduing Iran after the failure of military force?" - The Independent - BBC News Arabic (machine-translated headline from a Arabic-language source)