The United States and Iran are reportedly close to an agreement that would reopen the Strait of Hormuz, a critical global energy chokepoint. The deal, which could be announced as soon as today, is said to be contingent on maintaining a ceasefire between the two nations and initiating discussions on a broader nuclear agreement.
Under the proposed arrangement, Iran would gain increased control over traffic within the waterway, which handles approximately one-fifth of the world's oil and liquefied natural gas supplies. This development would strengthen Iran's position in the vital maritime passage, particularly after a five-month conflict.
Iran has reportedly refused direct negotiations with the U.S. regarding the conflict, opting instead to use Oman as a mediator. The potential agreement includes a temporary 60-day arrangement between Oman and Iran, which could be extended. This would stipulate that all inbound traffic into the Gulf adheres to Iranian waters, while outbound traffic remains in Omani waters. During this period, no tolls or fees would be levied, and naval mines are expected to be cleared within 30 days, thereby fully reopening the strait.
The deal also suggests the establishment of a 'voluntary fund' for the waterway's upkeep, with European countries potentially contributing to the costs. This model is reportedly inspired by similar voluntary payment arrangements in the Strait of Malacca, where ships contribute to Indonesia, Malaysia, and Singapore.
This potential agreement would be the second reached between the White House and Tehran in recent weeks. Following Iran's resumption of attacks on ships in June, which ended a prior ceasefire and led to two weeks of conflict, President Donald Trump had threatened a significant military response. However, he later rescinded the planned assault to allow for negotiations, describing it as the 'biggest attack since WWII'. Trump indicated on Monday that negotiations were nearing completion, stating Iran would receive a final opportunity to strike a deal or face further strikes.
Iran, however, has maintained that the reopening of the Strait hinges on the U.S. lifting its naval blockade. Tehran also denied claims of ongoing peace talks with Washington, asserting that discussions were focused with Oman on managing the Strait of Hormuz.
Stock markets reportedly saw a surge to record highs following Treasury Secretary Scott Bessent's indication of an imminent deal. Bessent stated that Trump's threat of force had encouraged the Iranian delegation to resume negotiations after a previous memorandum of understanding failed. He noted that Trump's decision to call off a potential large-scale military operation was influenced by requests from allied nations including Saudi Arabia, the UAE, and Qatar.
Meanwhile, reports have emerged concerning the U.S. Army's depleted stock of offensive precision missiles. Whistleblowers disclosed that the U.S. has expended nearly its entire arsenal of Army Tactical Missile Systems (ATACMS) and Precision Strike Missiles (PrSM). Officials expressed concern that these low stockpiles could impede the U.S. ability to counter adversaries like Russia and China. This warning comes amid reports that Trump's top military advisor, General Dan Caine, had alerted the President to the risks posed by dwindling supplies in the region. Despite these concerns, President Trump has maintained that the U.S. possesses more than sufficient firepower for ongoing conflicts.