Iran-Oman Hormuz talks, U.S.-Canada tariff escalation and Syria’s diplomatic realignment

Off Leash update 26 August 2026

IRAN •Iran and Oman said they were close to a deal to establish "a joint temporary navigational corridor through the Strait of Hormuz and an agreement to implement a joint project to clear the Strait of mines." •The latest proposal doesn't address the issue of whether Iran and Oman will be allowed to charge ships fees for their navigational and security "services" (which, for Iran, consist mainly of not attacking transiting ships). That question still needs to be worked out in planned "technical talks." •That doesn't mean the Strait is about to fully reopen. With or without a deal with Oman, Iran seems intent on keeping the chokepoint closed until the U.S. agrees to its list of demands, which include lifting the U.S. Navy's blockade on Iranian ports and reissuing a waiver for Iranian oil sales.

CANADA •The U.S. and Canada further escalated their trade war. Canadian Prime Minister Mark Carney announced retaliatory tariffs of up to 50% on U.S. exports of steel, dairy, and electronics to Canada, effective Sep. 8, and Pres. Trump fired back with plans to slap 50% tariffs on car parts and steel, starting Jan. 1. •Canada will suffer more than the U.S. under reciprocal tariffs since the Canadian economy has less buffer than the 13-times-larger U.S. economy. •But Canadians largely support their leader's decision to walk away from trade talks instead of accepting a bad deal. A new poll showed that 76% of respondents thought Carney was right to abandon talks - even though 38% of them fear they could lose their jobs as a result.

SYRIA •The U.S. removed Syria from its list of state sponsors of terror, in a major achievement for Pres. Al Sharaa - who has prioritized restoring diplomatic ties with Washington and lobbied for sanctions on him and his country to be lifted. •Syria had been designated a state sponsor of terror for 47 years - since the list's inception - so its removal now is significant. It will reduce the risk and regulatory burden of working and investing in Syria, which will help unlock funding for the reconstruction Al Sharaa wants to carry out. •In another big win for Al Sharaa's government, Mazloum Abdi - the head of the Kurdish-led Syrian Democratic Forces - announced that his militia has disbanded and will merge with the Syrian army under Al Sharaa's command. In return, the government agreed to recognize Kurdish cultural, civil and educational rights in Syria.