Global oil prices fell slightly on Wednesday after Iranian and Omani officials said discussions on managing traffic through the Strait of Hormuz progressed, with plans to create a temporary shipping corridor to allow vessels to pass.

Both countries released a joint statement after Omani Foreign Minister Badr bin Hamad Al Busaidi and Iranian Foreign Minister Abbas Araghchi met in Tehran on Tuesday.

They said a phased framework, including the “establishment of a joint temporary maritime corridor” and mine-clearing efforts in the strait, was discussed.

Though the agreement’s details remain unclear, the statement said the framework could provide a “practical and viable basis” for advancing negotiations on permanent navigation on the waterway.

According to Kpler, a maritime data firm, only five vessels crossed the strait on Tuesday as the U.S. continued to block the Strait of Hormuz.

The dip in oil prices comes as a relief amid the lingering conflict between Iran and the United States of America over control of the critical oil shipping route.

Qatari and Pakistani officials have been mediating the talks between the U.S. and Iran towards a ceasefire in the war that began on February 28 after Washington and Israel launched strikes on Tehran.

“Iran’s commitment to peace and stability is matched by steadfast diplomacy with our neighbours,” Iranian foreign minister, Mr Araghchi, wrote on social media.

Iran has moved to strengthen ties with allies, even as the U.S. mounts more pressure on the Islamic Republic. U.S. Treasury Secretary Scott Bessent announced an “economic D-Day” against Iran on Monday and threatened that Washington would impose penalties against countries that have trade ties with Tehran or help it evade sanctions.

With mounting pressure, the U.S. aims to weaken Iran into accepting Washington’s terms in future negotiations. However, China’s cooperation remains a key factor, as Beijing purchased more than 80 per cent of Iran’s oil exports last year.

China has criticised Mr Bessent’s campaign and warned that it would defend its interests. It also accused the U.S. of disrupting the global financial system.