President Donald Trump indicated that an agreement on the Strait of Hormuz could be announced soon, possibly as early as Wednesday. This development comes as Iran and Oman make progress toward reopening the vital passage, which could help end the ongoing conflict. Initially, the U.S. and Israel aimed to topple Tehran’s government and halt its nuclear program, but the conflict has shifted to control over the strait. Iran’s attacks and threats have halted shipping, affecting global fuel prices and the economy.
The closure of the strait has caused oil and natural gas prices to rise significantly, affecting markets worldwide. Trump is under increasing pressure to resolve this unpopular conflict, particularly with midterm congressional elections approaching.
Trump Comments on Strait Reopening
While in California, Trump addressed reporters regarding a recent Axios report suggesting an imminent announcement about the Strait of Hormuz. Trump stated, “A lot of progress has been made,” suggesting a potential agreement could be revealed soon.
On Wednesday, hopes for a deal led to a slight decrease in oil prices, with Brent crude falling by 1.2% to $78.43 per barrel. Previously, the U.S. and Iran reached a temporary deal to open the strait in June, but further attacks disrupted the agreement. Trump continues to switch between threatening military action and supporting diplomatic solutions.
Attacks Continue Amidst Diplomatic Efforts
Despite optimism for the Strait of Hormuz negotiations, attacks in the region have persisted. The Iranian-backed Houthi rebels claimed responsibility for firing ballistic missiles at a Saudi oil tanker in the Red Sea, although they provided no evidence.
In an ongoing conflict between the Houthis and Saudi Arabia, tensions rose after the Houthis closed the Bab el-Mandeb Strait. Additionally, an Indian-flagged ship sank after being hit by an explosive-laden boat, although no one has claimed responsibility.
Earlier, a cargo ship reported damage from an unknown projectile while passing through the Strait of Hormuz. Damage to the vessel was confirmed by the United Kingdom Maritime Trade Operations Center and the British security firm, Ambrey.
Details of the Proposed Agreement
Negotiations between Iran and Oman propose that ships should enter the Persian Gulf through an Iranian route and exit via an Omani route. Both countries would collect service fees for security and environmental preservation.
The Trump administration initially opposed any arrangement granting Iran control over the strait. The waterway, through which a significant portion of the world’s oil once flowed, has seen drastically reduced traffic due to Iran’s aggressive tactics since the conflict began.
In discussions with reporters, Trump opposed tolls in the strait, stating, “I’m not going to let them charge. Anybody’s going to charge, we’ll charge.” Regional officials explained that negotiations are ongoing, with the final agreement potentially tied to lifting the U.S. blockade on Iran’s ports.
Progress in U.S.-Iran Negotiations
Iranian Foreign Ministry spokesman Esmail Baghaei mentioned talks with Oman centered on “establishing safe inbound and outbound shipping lanes,” respecting sovereign rights and ensuring national security.
U.S. Secretary of State Marco Rubio confirmed progress but noted no final agreement yet. He previously expressed concern over any agreement giving Iran control, labeling it dangerous for global precedents.
U.S. Treasury Secretary Scott Bessent acknowledged the possibility of an imminent deal to reopen the strait. Trump reiterated the urgency of talks with Iran, describing it as Tehran’s “last chance” to prevent further U.S. military intervention.
Trump outlined that reopening the straits would be the first phase, followed by denuclearization, which he acknowledged would take additional time.
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