Strait of Hormuz Deal Nears as Iran and Oman Make Progress

President Donald Trump stated that a deal to reopen the Strait of Hormuz could be finalized as early as Wednesday or Thursday, August 5-6. The negotiations between Iran and Oman have made significant progress, despite ongoing attacks by Houthi militants on Saudi oil tankers. Trump emphasized that the strait 'is going to be open very soon,' but warned Tehran that a military response remains an option if diplomacy collapses again.

Treasury Secretary Scott Bessent had earlier mentioned active talks with Iran, and a deal to open the strait could come within days. This announcement led to a sharp decline in oil prices on Tuesday, with Brent crude falling more than five percent, before climbing back about one percent to approximately $80 a barrel on Wednesday.

Iran's Foreign Minister Esmaeil Baqaei confirmed that talks with Oman had been positive, stating that Tehran is working to establish 'the necessary mechanisms for future arrangements for the management of shipping traffic.' However, Iranian officials publicly denied holding direct talks with Washington, which Trump called 'such a lie.'

Regional officials familiar with the negotiations reported that the emerging framework would route inbound ships through an Iranian-controlled lane and outbound vessels through an Omani-controlled lane, with service fees charged for security and maritime environmental protection. The proposed arrangement has raised concerns about Iran's potential toll authority over the strait, which is currently an open international waterway.