U.S. President Donald Trump indicated Tuesday evening that a deal to reopen the Strait of Hormuz could be finalized as early as Wednesday. The waterway, crucial for global energy transport, has seen traffic severely limited due to ongoing conflict.
The potential agreement, emerging from talks between Iran and Oman, could ease pressure on the global economy and potentially contribute to an end to the war, according to a report.
Trump, speaking to reporters while traveling in California, addressed a report suggesting an announcement regarding the Strait of Hormuz might be made Wednesday. "It could happen. Tomorrow or the next day," he said, adding that "a lot of progress has been made."
The closure of the strait, through which a significant portion of the world's oil and natural gas once passed, has contributed to rising fuel and goods prices worldwide. President Trump faces mounting pressure to resolve the conflict ahead of midterm congressional elections.
Oil prices saw an initial dip on hopes of resumed shipping but later saw a slight increase. Brent crude, the international benchmark, was trading around $80 per barrel on Wednesday, a level well below its peak during the conflict.
This follows a previous deal between the U.S. and Iran to open the strait in June, which was later undermined by renewed attacks. In recent days, Trump has alternated between threatening substantial strikes and expressing support for diplomatic efforts.
Despite optimism for a deal on the Strait of Hormuz, attacks on shipping in the region have continued. On Wednesday, Iranian-backed Houthi rebels claimed responsibility for firing ballistic missiles toward a Saudi oil tanker, the Wafa, in the Red Sea. The rebels' military spokesman, Brig. Gen. Yahya Saree, stated the vessel was targeted near the Saudi port city of Yanbu, though no evidence was provided.
This incident is part of a recent escalation between the Houthi rebels and Saudi Arabia that risks reigniting Yemen's civil war. In July, the Houthis announced a closure of the Bab el-Mandeb Strait, leading to the Red Sea, for Saudi-linked shipping, further pressuring international transit as the Red Sea had become a key alternative route for Saudi oil exports during the conflict.
Earlier on Tuesday, an Indian-flagged commercial ship sank in the Red Sea off Yemen after being struck by a boat laden with explosives, according to Yemeni and Indian authorities. The crew, comprising 13 Indians and one Yemeni, were rescued by Yemen's coast guard. No group immediately claimed responsibility for this attack.
Additionally, a cargo ship reported being "hit by an unknown projectile" on Tuesday approximately 37 kilometers northeast of the Omani port city of Al Khasab in the Strait of Hormuz, according to the United Kingdom Maritime Trade Operations Center.
Regional officials, speaking anonymously, indicated that the potential agreement between Iran and Oman involves ships entering the Persian Gulf via an Iranian-controlled route and exiting through an Omani-controlled route. Service fees would reportedly be levied for security and environmental preservation.
The Trump administration has previously opposed any agreement granting Iran control over the strait, which was an open international waterway before the war. Trump has stated, "I’m not going to let them charge. Anybody’s going to charge, we’ll charge."
Negotiations are ongoing, and the final terms of any deal could differ, potentially linking to the lifting of U.S. sanctions on Iranian ports. Iran's Foreign Ministry spokesman, Esmail Baghaei, confirmed Tuesday that discussions with Oman were focused on "establishing safe inbound and outbound shipping lanes" that respect "sovereign rights while also addressing the national security considerations of both Iran and Oman."
U.S. Secretary of State Marco Rubio confirmed progress in these talks but emphasized they were not yet final. He has previously stated that granting Iran control over the strait would set a "very dangerous precedent."