Iran and Oman near deal to reopen Strait of Hormuz as Trump signals breakthrough
A draft accord would route tankers through Iranian and Omani-controlled channels, but US opposition to Tehran charging transit fees remains a sticking point.
Iran says it has reached the final stage of drafting an agreement with Oman to reopen the Strait of Hormuz, a move that could restore the flow of a fifth of the world's traded oil and natural gas. Donald Trump told reporters on Tuesday that an announcement could come within days, adding that "a lot of progress has been made."
The waterway has been effectively closed since the US and Israel launched military action against Iran on 28 February, citing the goal of toppling the government in Tehran and ending its nuclear programme. Those objectives have not been met, and the conflict has settled into a struggle over the strait, where Iranian assertions of control and attacks on shipping have brought traffic to a near standstill. The closure has driven up fuel and food prices worldwide, adding to inflationary pressure just as the US president faces congressional elections in November.
According to two regional officials briefed on the talks, the proposed arrangement would direct inbound vessels through an Iranian-controlled corridor and outbound traffic through an Omani-controlled corridor. Service fees would be levied for security and environmental protection. Iran's Foreign Ministry spokesperson, Esmail Baghaei, said a joint statement would be issued "if certain parties do not obstruct this process", a clear reference to Washington.
The agreement still requires sign-off from Supreme Leader Ayatollah Mojtaba Khamenei, who has not appeared in public since the war's opening strikes. Officials describe the deal as a temporary measure linked to a broader US-Iran understanding reached in June that subsequently collapsed. If implemented, it could pave the way for renewed negotiations on Tehran's nuclear programme.
The Trump administration has previously ruled out any arrangement that cements Iranian control over the strait, arguing it would break longstanding norms of free navigation. The White House also opposes Tehran charging transit fees. Yet the president's public optimism suggests a willingness to compromise. Vice President JD Vance acknowledged the difficulty on Wednesday, describing the diplomatic effort as "messy" and noting that progress often feels like moving backwards.
Oil markets reacted cautiously. Brent crude hovered around $80 a barrel on Wednesday, well below the peaks seen at the height of the conflict but above pre-war levels. Analysts say any durable reopening would likely push prices lower, providing relief to consumers and businesses globally. Previous spikes have shown how sensitive the market remains to Hormuz developments.
Even as diplomats work on the strait, violence continues elsewhere. Houthi rebels in Yemen claimed missile attacks on two Saudi oil tankers in the Red Sea, and the UK Maritime Trade Operations centre reported an explosion near a vessel in the Gulf of Aden. The Houthis closed the Bab el-Mandeb Strait to Saudi-linked shipping in July, further complicating alternative routes.
Meanwhile, the fragile ceasefire between Israel and Hezbollah showed new strain. The Israeli military issued an evacuation warning for the southern Lebanese village of Mansouri and carried out what it called "precise strikes" in response to an alleged ceasefire violation. Talks in Rome on Israeli withdrawal and Hezbollah disarmament ended early "due to events on the ground," though a State Department official described them as "extremely productive."
For now, the Hormuz draft offers the clearest glimpse of a diplomatic off-ramp since the war began. Whether it survives the competing demands of Tehran, Washington and regional actors will determine if the world's most critical oil artery reopens, or remains a bargaining chip in a wider confrontation.