# Strait of Hormuz traffic returns to normal by December 31?

Updated: August 6, 2026

Category: Geopolitics

Tags: Politics, ships, Economy, Iran Ceasefire, Iran, transit, Hormuz, Strait of Hormuz

HTML: /markets/geopolitics/politics/strait-of-hormuz-traffic-returns-to-normal-by-december-31/

## Short Answer

**Key takeaway.** Both the **model** and the **market** expect Strait of Hormuz traffic to return to normal by December 31, with no compelling evidence of mispricing.

## Key Claims (January 2026)

**- - Yes, Iranian factions exhibit strategic consensus regarding the Strait of Hormuz.** - Yes, US and allies demand security guarantees for navigation freedom.

### Why This Matters (GEO)

- AI agents extract claims, not arguments.
- Improves citation probability in summaries and answer cards.
- Enables fact stitching across multiple sources.

## Executive Verdict

**Key takeaway.** The **market** at 60c prices higher than the **56.7%** **model** estimate, despite Iranian demands and minimal current transits.

### Who Wins and Why

| Outcome | Market | Model | Why |
| --- | --- | --- | --- |
| Yes | 60.0% | 56.7% | Progress toward an Iran ceasefire could lead to normalized transit through the Strait. |

## Model vs Market

- Model Probability: 56.7% (Yes)
- Market Probability: 60.0% (Yes)
- Yes refers to: Yes
- Edge: -3.3pp
- Expected Return: -5.5%
- R-Score: -0.33
- Total Volume: $7,274,430.66
- 24h Volume: $132,847.78
- Open Interest: $0

- Expiration: December 31, 2026

## Market Behavior & Price Dynamics

The prediction market for normal Strait of Hormuz traffic by year-end shows a clear upward trend. Since opening at 49.5% in late July, the implied probability has climbed to a current price of 60.5%. The contract has traded within a range of 46.5% to 63.5%, establishing the lower bound as a potential support level and the upper bound as near-term resistance. The overall price action signals a shift in market sentiment toward a higher likelihood of resolution by December 31.

A sharp 12.0 percentage point spike on August 02, from 46.5% to 58.5%, was the most significant event. This move appears to be a direct reaction to reports from The New York Times and AP News about progress in ceasefire and reopening negotiations. However, the market has zero traded volume. This absence of liquidity indicates that price movements reflect market-maker adjustments to news events, not active positioning by traders. The lack of volume suggests the current 60.5% probability lacks conviction and represents a thin, news-driven market.

## Significant Price Movements

#### 📈 August 02, 2026: 12.0pp spike

Price increased from 46.5% to 58.5%

**Outcome:** Yes

**What happened:** The primary driver of the 12.0 percentage point spike in the "Strait of Hormuz traffic returns to normal by December 31?" market on August 02, 2026, appears to be reports of progress in negotiations to reopen the Strait and secure a ceasefire. News outlets, including The New York Times and AP News, reported on August 3, 2026, about an "emerging deal" between Iran and Oman, and that officials were reporting "progress on a deal to reopen the Strait of Hormuz" [[^]](https://www.nytimes.com/2026/08/03/us/politics/strait-of-hormuz-possible-reopening-deal.html)[[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541). This closely coincides with the market's movement, suggesting early reports or rumors of these negotiation breakthroughs likely circulated on August 2nd. Social media activity was irrelevant to this movement, as the provided research contains no evidence of influential social media posts driving the spike.

## Contract Snapshot

This Polymarket contract resolves to "Yes" if IMF Portwatch publishes a 7-day moving average of transit calls for the Strait of Hormuz equal to or above 60 for any date between market creation and December 31, 2026. Otherwise, the market will resolve to "No" once data has been published for the final date of December 31, 2026, and the "Yes" condition has not been met. The market can resolve early if the "Yes" condition is satisfied, and data revisions within the timeframe are considered, while obvious data integrity issues may delay final resolution for corrections.

## Market Discussion

For the Kalshi prediction market on the Strait of Hormuz traffic, traders currently show a 60.5% consensus for normalization by year-end, which means reaching a 7-day average of 60 transit calls. Key arguments for "Yes" focus on ongoing diplomatic talks, the potential for a durable agreement, and previous temporary easements. Arguments for "No" emphasize persistent US-Iran hostilities, vessel attacks, high war-risk insurance costs, and traffic remaining significantly below pre-crisis levels.

## Market Data

| Contract | Yes Bid | Yes Ask | Last Price | Volume | Open Interest |
| --- | --- | --- | --- | --- | --- |
| Yes | 60% | 61% | 60% | $7,274,430.66 | $0 |

## What are the key political or military triggers within Iran that could halt the diplomatic progress on reopening the Strait of Hormuz before December 31?

Current Diplomatic Status | Positive and progressive as of early August 2026 (Iran and Oman) [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://gulfnews.com/world/mena/iran-oman-make-positive-progress-on-strait-of-hormuz-shipping-framework-iran-foreign-ministry-spokesperson-1.500630899)[[^]](https://www.nytimes.com/2026/08/04/world/middleeast/strait-of-hormuz-deal-progress.html) |
Prior Diplomatic Outcome | Collapsed in June 2026 [[^]](https://www.nytimes.com/2026/08/04/world/middleeast/strait-of-hormuz-deal-progress.html) |
Key Military Trigger | Resumption of direct military strikes between the U.S. and Iran [[^]](https://www.reuters.com/world/middle-east/us-iran-having-very-good-discussions-trump-says-2026-08-05/) |

**Iranian demands for control and sanctions relief hinder diplomatic progress**

Iranian demands for control and sanctions relief hinder diplomatic progress. Key political and economic factors that could impede diplomatic efforts to reopen the Strait of Hormuz include Iran's demands for territorial control over transit lanes and the lifting of U.S. blockades on its ports [[^]](https://www.reuters.com/world/middle-east/us-iran-having-very-good-discussions-trump-says-2026-08-05/)[[^]](https://www.aljazeera.com/economy/2026/7/10/strait-of-hormuz-shipping-grinds-to-halt-as-us-iran-resume-fighting). Further disagreements concerning the sovereignty and security interests of the involved parties, particularly Iran, also pose a significant risk to ongoing negotiations [[^]](https://www.aljazeera.com/news/2026/8/2/no-breakthrough-on-strait-of-hormuz-as-trump-halts-attack-on-iran).

Diplomatic efforts show progress but remain highly fragile. Current discussions between Iran and Oman were described as 'positive' and 'progressive' in early August 2026 [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://gulfnews.com/world/mena/iran-oman-make-positive-progress-on-strait-of-hormuz-shipping-framework-iran-foreign-ministry-spokesperson-1.500630899)[[^]](https://www.nytimes.com/2026/08/04/world/middleeast/strait-of-hormuz-deal-progress.html). However, the fragility of this diplomatic process is underscored by the collapse of previous efforts in June 2026 [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://gulfnews.com/world/mena/iran-oman-make-positive-progress-on-strait-of-hormuz-shipping-framework-iran-foreign-ministry-spokesperson-1.500630899)[[^]](https://www.nytimes.com/2026/08/04/world/middleeast/strait-of-hormuz-deal-progress.html).

Resumed U.S.-Iran military strikes could immediately halt progress. A critical military trigger that could halt diplomatic progress is the resumption of direct strikes between the U.S. and Iran [[^]](https://www.reuters.com/world/middle-east/us-iran-having-very-good-discussions-trump-says-2026-08-05/). Past instances of such conflicts have historically led to a steep fall in Strait of Hormuz ship traffic [[^]](https://www.bbc.com/news/articles/c621k5r8764o)[[^]](https://www.aljazeera.com/economy/2026/7/10/strait-of-hormuz-shipping-grinds-to-halt-as-us-iran-resume-fighting), with broader references to 'the war in Iran' and 'attacks on Iran' emphasizing persistent military concerns [[^]](https://www.youtube.com/watch?v=1DtSrI4m79I)[[^]](https://www.youtube.com/watch?v=M5-cvBvsr6w)[[^]](https://www.youtube.com/watch?v=cmzYh_qQibg).

## According to maritime logistics experts, what is the realistic timeline for traffic to ramp up from current 'trickle' levels to the 60-transit daily average once a political deal is announced?

Current Daily Transits | 8-15 per day (early August 2026) [[^]](https://straits.live/briefs/2026-08-03)[[^]](https://www.foreignpolicyjournal.com/2026/08/03/strait-of-hormuz-crossings-rise-8-week-on-week-but-dark-ais-activity-remains-elevated/)[[^]](https://www.kpler.com/blog/strait-of-hormuz-crossings-drop-70-as-tanker-traffic-shifts-almost-entirely-to-the-iranian-route) |
Normal Traffic Level (Prediction Markets) | 60 or more daily transits (7-day moving average) [[^]](https://www.cftc.gov/filings/ptc/ptc040826884.pdf)[[^]](https://www.lloydslist.com/LL1156995/The-Daily-View-Place-your-bets-on-length-of-Hormuz-disruption)[[^]](https://straits.live/) |
Time for Full Return to Pre-Crisis Levels | 3 to 12 months [[^]](https://straits.live/briefs/2026-08-03)[[^]](https://www.foreignpolicyjournal.com/2026/08/03/strait-of-hormuz-crossings-rise-8-week-on-week-but-dark-ais-activity-remains-elevated/)[[^]](https://www.kpler.com/blog/strait-of-hormuz-crossings-drop-70-as-tanker-traffic-shifts-almost-entirely-to-the-iranian-route)[[^]](https://theconversation.com/the-strait-of-hormuz-is-reopening-but-global-shipping-wont-return-to-normal-for-months-285313)[[^]](https://www.xeneta.com/news/us-iran-deal-to-reopen-strait-of-hormuz-but-full-container-shipping-recovery-at-least-three-months-away) |

**Strait of Hormuz transits are currently minimal, far below normal levels**

Strait of Hormuz transits are currently minimal, far below normal levels. As of early August 2026, daily transits through the Strait of Hormuz typically range between 8 and 15 vessels per day [[^]](https://straits.live/briefs/2026-08-03)[[^]](https://www.foreignpolicyjournal.com/2026/08/03/strait-of-hormuz-crossings-rise-8-week-on-week-but-dark-ais-activity-remains-elevated/)[[^]](https://www.kpler.com/blog/strait-of-hormuz-crossings-drop-70-as-tanker-traffic-shifts-almost-entirely-to-the-iranian-route). This is significantly lower than the "normal" traffic defined by prediction markets for contract resolution, which commonly refers to a 7-day moving average of 60 or more daily transits [[^]](https://www.cftc.gov/filings/ptc/ptc040826884.pdf)[[^]](https://www.lloydslist.com/LL1156995/The-Daily-View-Place-your-bets-on-length-of-Hormuz-disruption)[[^]](https://straits.live/).

Initial traffic recovery to "normal" levels remains an open question. Maritime logistics models suggest that, in the event of a political deal, vessel traffic could rise from approximately 15 transits per day to about 40 transits per day over the first 30 days [[^]](https://www.kpler.com/blog/after-the-deal-transits-could-near-50-of-pre-war-levels-in-30-days). However, the available information does not specify a realistic timeline for traffic to ramp up from current levels to the 60-transit daily average considered "normal" by prediction markets.

Full restoration to pre-crisis traffic levels will take several months. Experts indicate that a complete return to pre-crisis traffic volumes, which were approximately 88-100 transits per day, will likely require an estimated 3 to 12 months [[^]](https://straits.live/briefs/2026-08-03)[[^]](https://www.foreignpolicyjournal.com/2026/08/03/strait-of-hormuz-crossings-rise-8-week-on-week-but-dark-ais-activity-remains-elevated/)[[^]](https://www.kpler.com/blog/strait-of-hormuz-crossings-drop-70-as-tanker-traffic-shifts-almost-entirely-to-the-iranian-route)[[^]](https://theconversation.com/the-strait-of-hormuz-is-reopening-but-global-shipping-wont-return-to-normal-for-months-285313)[[^]](https://www.xeneta.com/news/us-iran-deal-to-reopen-strait-of-hormuz-but-full-container-shipping-recovery-at-least-three-months-away). This extended timeline is attributed to various logistical constraints, such as clearing backlogs, de-mining operations, and the slow return of commercial **confidence** and insurance normalization [[^]](https://straits.live/briefs/2026-08-03)[[^]](https://www.foreignpolicyjournal.com/2026/08/03/strait-of-hormuz-crossings-rise-8-week-on-week-but-dark-ais-activity-remains-elevated/)[[^]](https://www.kpler.com/blog/strait-of-hormuz-crossings-drop-70-as-tanker-traffic-shifts-almost-entirely-to-the-iranian-route)[[^]](https://theconversation.com/the-strait-of-hormuz-is-reopening-but-global-shipping-wont-return-to-normal-for-months-285313)[[^]](https://www.xeneta.com/news/us-iran-deal-to-reopen-strait-of-hormuz-but-full-container-shipping-recovery-at-least-three-months-away).

## How do the publicly stated goals of Iran's moderate government factions compare with those of hardline elements in the IRGC and Parliament regarding the terms for reopening the Strait?

Factional Strategic Consensus | Moderate and hardline elements agree on Strait of Hormuz as essential leverage and for regime survival [[^]](https://apnews.com/article/iran-war-leadership-divisions-next-endgame-2c06501211d937c417c5f627a9ede1af)[[^]](https://understandingwar.org/research/middle-east/iran-update-special-report-july-11-2026/)[[^]](https://www.bbc.com/news/articles/cwymx3eevpjo)[[^]](https://understandingwar.org/research/middle-east/iran-update-special-report-july-28-2026/) |
Factional Tactical Disagreement | Disagreement is tactical, concerning negotiations versus military escalation [[^]](https://apnews.com/article/iran-war-leadership-divisions-next-endgame-2c06501211d937c417c5f627a9ede1af)[[^]](https://understandingwar.org/research/middle-east/iran-update-special-report-july-11-2026/)[[^]](https://www.bbc.com/news/articles/cwymx3eevpjo)[[^]](https://understandingwar.org/research/middle-east/iran-update-special-report-july-28-2026/) |
Condition for Full Reopening | US must end naval blockade and withdraw from the region [[^]](https://www.theguardian.com/world/live/2026/aug/06/iran-oman-strait-of-hormuz-yemen-houthis-israel-lebanon-gaza-us-donald-trump-middle-east-crisis-live-news)[[^]](https://www.cbsnews.com/live-updates/iran-war-us-trump-strait-of-hormuz-deal/)[[^]](https://straits.live/report)[[^]](https://www.aljazeera.com/news/2026/8/2/no-breakthrough-on-strait-of-hormuz-as-trump-halts-attack-on-iran) |

**Iranian factions share a strategic consensus on the Strait of Hormuz**

Iranian factions share a strategic consensus on the Strait of Hormuz. Both moderate/pragmatic elements and hardline IRGC-affiliated groups view the Strait as crucial leverage against the United States and vital for regime survival [[^]](https://apnews.com/article/iran-war-leadership-divisions-next-endgame-2c06501211d937c417c5f627a9ede1af)[[^]](https://understandingwar.org/research/middle-east/iran-update-special-report-july-11-2026/)[[^]](https://www.bbc.com/news/articles/cwymx3eevpjo)[[^]](https://understandingwar.org/research/middle-east/iran-update-special-report-july-28-2026/). Their divergences primarily concern tactical approaches, specifically whether to pursue negotiations or military escalation. While ultra-hardline groups like the Paydari Front oppose any direct negotiations with the U.S., they typically lack sufficient institutional power to completely obstruct ongoing diplomatic efforts [[^]](https://apnews.com/article/iran-war-leadership-divisions-next-endgame-2c06501211d937c417c5f627a9ede1af)[[^]](https://understandingwar.org/research/middle-east/iran-update-special-report-july-28-2026/).

Iran presents unified terms for the Strait's full reopening. The nation maintains a consistent position that a complete reopening of the Strait of Hormuz requires the U.S. to end its naval blockade and withdraw from the region [[^]](https://www.theguardian.com/world/live/2026/aug/06/iran-oman-strait-of-hormuz-yemen-houthis-israel-lebanon-gaza-us-donald-trump-middle-east-crisis-live-news)[[^]](https://www.cbsnews.com/live-updates/iran-war-us-trump-strait-of-hormuz-deal/)[[^]](https://straits.live/report)[[^]](https://www.aljazeera.com/news/2026/8/2/no-breakthrough-on-strait-of-hormuz-as-trump-halts-attack-on-iran). Research indicates no differing publicly stated terms for reopening the Strait proposed by moderate versus hardline factions, underscoring a consistent Iranian insistence on these core conditions for full access [[^]](https://www.theguardian.com/world/live/2026/aug/06/iran-oman-strait-of-hormuz-yemen-houthis-israel-lebanon-gaza-us-donald-trump-middle-east-crisis-live-news)[[^]](https://www.cbsnews.com/live-updates/iran-war-us-trump-strait-of-hormuz-deal/)[[^]](https://straits.live/report)[[^]](https://www.aljazeera.com/news/2026/8/2/no-breakthrough-on-strait-of-hormuz-as-trump-halts-attack-on-iran). As of August 6, 2026, Iran and Oman are engaged in negotiations regarding a potential managed reopening or the establishment of a new security **model** for the Strait [[^]](https://www.theguardian.com/world/live/2026/aug/06/iran-oman-strait-of-hormuz-yemen-houthis-israel-lebanon-gaza-us-donald-trump-middle-east-crisis-live-news)[[^]](https://www.cbsnews.com/live-updates/iran-war-us-trump-strait-of-hormuz-deal/)[[^]](https://straits.live/report)[[^]](https://www.aljazeera.com/news/2026/8/2/no-breakthrough-on-strait-of-hormuz-as-trump-halts-attack-on-iran).

## What is the methodology and reporting lag for the IMF PortWatch data, and are there alternative real-time vessel tracking sources that could serve as leading indicators?

IMF PortWatch Data Lag | 3–5 days [[^]](https://portwatch.imf.org/pages/data-and-methodology)[[^]](https://www.elibrary.imf.org/view/journals/001/2026/099/article-A001-en.xml)[[^]](https://github.com/jo20ow/obsyd) |
IMF PortWatch Data Source | Satellite-based Automatic Identification System (AIS) vessel movement data [[^]](https://portwatch.imf.org/pages/data-and-methodology)[[^]](https://www.elibrary.imf.org/view/journals/001/2026/099/article-A001-en.xml)[[^]](https://github.com/jo20ow/obsyd) |
Alternative Real-time Trackers | AISStream, Kpler, and SeaVantage [[^]](https://github.com/jo20ow/obsyd)[[^]](https://www.kpler.com/solution/ship-tracking)[[^]](https://www.seavantage.com/ship-insight) |

**IMF PortWatch tracks maritime trade using satellite AIS data**

IMF PortWatch tracks maritime trade using satellite AIS data. This system employs satellite-based Automatic Identification System (AIS) vessel movement data to monitor chokepoint transits and provide nowcasts of maritime trade. The data from IMF PortWatch typically has a reporting lag of three to five days [[^]](https://portwatch.imf.org/pages/data-and-methodology)[[^]](https://www.elibrary.imf.org/view/journals/001/2026/099/article-A001-en.xml)[[^]](https://github.com/jo20ow/obsyd).

Several alternative sources offer real-time vessel tracking and leading indicators. For real-time vessel tracking and potential leading indicators, alternative providers such as AISStream, Kpler, and SeaVantage are available [[^]](https://github.com/jo20ow/obsyd)[[^]](https://www.kpler.com/solution/ship-tracking)[[^]](https://www.seavantage.com/ship-insight). These platforms deliver live AIS feeds, facilitate advanced voyage event detection, and utilize a combination of satellite and terrestrial sensor fusion for comprehensive maritime activity monitoring [[^]](https://github.com/jo20ow/obsyd)[[^]](https://www.kpler.com/solution/ship-tracking)[[^]](https://www.seavantage.com/ship-insight).

## What specific security guarantees are the US and its allies likely to require from Iran and Oman as preconditions for endorsing a new maritime traffic framework?

US & Allies Stance | Require security guarantees for freedom of navigation (UNCLOS) [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://www.nbcnews.com/world/iran/iran-oman-propose-fee-plan-strait-hormuz-sources-say-rcna352822)[[^]](https://www.justsecurity.org/137610/iran-toll-strait-hormuz/) |
Rejected Proposals | Iran's proposals for oversight and fee collection [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://www.aljazeera.com/news/2026/7/29/iran-and-oman-swap-proposals-to-manage-strait-of-hormuz-what-we-know)[[^]](https://www.aljazeera.com/news/2026/7/28/iran-and-oman-exchange-proposals-to-manage-strait-of-hormuz) |
Negotiation Status | Iran and Oman negotiating maritime framework as of August 2026 [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://gulfnews.com/world/mena/iran-oman-make-positive-progress-on-strait-of-hormuz-shipping-framework-iran-foreign-ministry-spokesperson-1.500630899)[[^]](https://www.aljazeera.com/news/2026/7/28/iran-and-oman-exchange-proposals-to-manage-strait-of-hormuz) |

**The United States and its allies demand security guarantees for freedom of navigation**

The United States and its allies demand security guarantees for freedom of navigation. They insist that any new maritime traffic framework must uphold the principle of freedom of navigation in the Strait of Hormuz, in strict accordance with international maritime law (UNCLOS) [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://www.nbcnews.com/world/iran/iran-oman-propose-fee-plan-strait-hormuz-sources-say-rcna352822)[[^]](https://www.justsecurity.org/137610/iran-toll-strait-hormuz/). The U.S. and its partners firmly reject any arrangement that would empower Iran or Oman to impose tolls, manage transit lanes, or restrict international passage through the Strait [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://www.nbcnews.com/world/iran/iran-oman-propose-fee-plan-strait-hormuz-sources-say-rcna352822)[[^]](https://www.justsecurity.org/137610/iran-toll-strait-hormuz/).

The U.S. and regional partners reject Iran's proposals for control. Specifically, the U.S. and its regional allies have dismissed Iran's proposals concerning its oversight of transit routes and the potential collection of fees [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://www.aljazeera.com/news/2026/7/29/iran-and-oman-swap-proposals-to-manage-strait-of-hormuz-what-we-know)[[^]](https://www.aljazeera.com/news/2026/7/28/iran-and-oman-exchange-proposals-to-manage-strait-of-hormuz). They view these proposals as attempts to institutionalize control over an international waterway, which runs counter to their strategic interests [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://www.aljazeera.com/news/2026/7/29/iran-and-oman-swap-proposals-to-manage-strait-of-hormuz-what-we-know)[[^]](https://www.aljazeera.com/news/2026/7/28/iran-and-oman-exchange-proposals-to-manage-strait-of-hormuz).

Iran and Oman continue negotiations amid significant disagreements. As of August 2026, Iran and Oman are engaged in ongoing negotiations to establish a new maritime framework, which addresses technical management, transit routes, and security aspects [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://gulfnews.com/world/mena/iran-oman-make-positive-progress-on-strait-of-hormuz-shipping-framework-iran-foreign-ministry-spokesperson-1.500630899)[[^]](https://www.aljazeera.com/news/2026/7/28/iran-and-oman-exchange-proposals-to-manage-strait-of-hormuz). However, substantial disagreements persist between the two nations, particularly concerning issues of control and sovereignty over the international waterway [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://gulfnews.com/world/mena/iran-oman-make-positive-progress-on-strait-of-hormuz-shipping-framework-iran-foreign-ministry-spokesperson-1.500630899)[[^]](https://www.aljazeera.com/news/2026/7/28/iran-and-oman-exchange-proposals-to-manage-strait-of-hormuz).

## What Could Change the Odds

**Maritime traffic in the Strait of Hormuz remains significantly suppressed, with transit levels as of August 6, 2026, far below the pre-crisis baseline of approximately 88 daily transits [[^]](https://straits.live/briefs/2026-08-03)[[^]](https://www.bloomberg.com/news/articles/2026-08-04/hormuz-traffic-at-a-trickle-as-ship-attacks-heighten-concerns)[[^]](https://straits.live/report).** This suppression stems from the ongoing conflict between the U.S./Israel and Iran [[^]](https://straits.live/briefs/2026-08-03)[[^]](https://www.bloomberg.com/news/articles/2026-08-04/hormuz-traffic-at-a-trickle-as-ship-attacks-heighten-concerns)[[^]](https://straits.live/report). The broader Middle East conflict has also led to a cumulative supply loss of over 1.5 billion barrels of oil [[^]](https://www.youtube.com/watch?v=2HJ1ybGxoiQ).

**Negotiations between Iran and Oman for a temporary reopening of the strait are reportedly in their "final stage" as of early August 2026 [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://ca.news.yahoo.com/iran-says-hormuz-deal-oman-025547712.html).** However, the success of these talks remains contingent on issues such as the lifting of U.S. blockades and potential obstruction by other parties [[^]](https://apnews.com/article/iran-us-war-strait-hormuz-oman-diplomacy-6587f90f2ab5beec373ce5fabf637541)[[^]](https://ca.news.yahoo.com/iran-says-hormuz-deal-oman-025547712.html).

**Prediction markets currently price a 60-65% probability for the normalization of traffic by December 31, 2026 [[^]](https://explorer.struct.to/markets/strait-of-hormuz-traffic-returns-to-normal-by-december-31)[[^]](https://dgpredict.com/app/event/strait-of-hormuz-traffic-returns-to-normal-by-december-31)[[^]](https://chanceindex.com/odds/strait-of-hormuz-traffic-returns-to-normal-by-december-31).** Normalization is defined as a 7-day moving average of 60 or more transit calls per IMF PortWatch [[^]](https://explorer.struct.to/markets/strait-of-hormuz-traffic-returns-to-normal-by-december-31)[[^]](https://dgpredict.com/app/event/strait-of-hormuz-traffic-returns-to-normal-by-december-31)[[^]](https://chanceindex.com/odds/strait-of-hormuz-traffic-returns-to-normal-by-december-31).

## Key Dates & Catalysts

- **Closes:** December 31, 2026

## Decision-Flipping Events

- Maritime traffic in the Strait of Hormuz remains significantly suppressed, with transit levels as of August 6, 2026, far below the pre-crisis baseline of approximately 88 daily transits [^] [^] [^] .
- This suppression stems from the ongoing conflict between the U.S./Israel and Iran [^] [^] [^] .
- The broader Middle East conflict has also led to a cumulative supply loss of over 1.5 billion barrels of oil [^] .
- Negotiations between Iran and Oman for a temporary reopening of the strait are reportedly in their "final stage" as of early August 2026 [^] [^] .

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## Historical Resolutions

No historical resolution data available for this series.

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### Data Sources & Model Transparency

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**Freshness:** Analysis is generated periodically and may not reflect the latest developments. Verify critical information from primary sources.

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