Cairo: US President Donald Trump said a deal to reopen the Strait of Hormuz could be announced as early as Wednesday, as Iran and Oman moved closer to an agreement on the vital shipping lane that could ease pressure on the global economy and potentially help end the war, AP reported.
The war, launched by the US and Israel on Feb. 28, was initially framed around toppling Tehran’s government and ending its nuclear programme. But the conflict has since turned into a struggle over maritime access, with Iranian threats and attacks on shipping bringing traffic through the waterway to a standstill.
Closure of the strait, through which a fifth of the world’s oil and natural gas once flowed, has pushed up fuel and basic goods costs far beyond the region and rattled global markets. Trump is also facing growing pressure to end an unpopular war before midterm congressional elections.
Deal Close
Asked by reporters travelling with him in California about an Axios report suggesting an announcement on the Strait of Hormuz could come on Wednesday, Trump said: “It could happen. Tomorrow or the next day,” he said, speaking Tuesday evening California time. “A lot of progress has been made.”
Oil prices initially eased on hopes of a breakthrough that would allow shipping to resume, but later inched higher. Brent crude, the international benchmark, was around $80 per barrel on Wednesday, still far below the levels reached at the height of the conflict.
The US and Iran reached an agreement in June to open the strait, but attacks later resumed. In recent days, Trump has alternated between threats of major strikes and support for diplomacy.
Attacks On Shipping Continue
Even with expectations rising that a deal may be imminent, attacks on shipping in the region continued. The Iran-aligned Houthi rebels said on Wednesday they launched a missile attack on the Saudi oil tanker Wafa off the Red Sea port city of Yanbu. Military spokesman Yahya Saree made the claim in a prerecorded statement, but he gave no evidence and did not say when the attack took place.
Saudi Arabia gave no immediate response.
The assault marks another escalation in the standoff between the rebels and Saudi Arabia, raising fears of renewed conflict in Yemen, where the Houthis have been fighting a Saudi-led coalition backing the government.
On Tuesday, a commercial vessel flying Indian flag sank in the Red Sea off Yemen after being hit by an explosive-laden boat, Yemeni and Indian authorities said. Yemen’s coast guard rescued the crew, which included 13 Indians and a Yemeni. No one immediately claimed responsibility.
Earlier the same day, another cargo vessel reported “hit by an unknown projectile” about 37 kilometres northeast of the Omani port city of Al Khasab in the Strait of Hormuz, according to the United Kingdom Maritime Trade Operations Center.
Talks Continue
Regional officials told The Associated Press that the emerging Iran-Oman understanding would send ships into the Persian Gulf through an Iranian-controlled route and out through a route controlled by Oman. They said service fees would be charged for security and environmental protection.
The officials spoke on condition of anonymity because the negotiations are sensitive. They also said the final format could still change, including a possible link to lifting the US blockade on Iran’s ports.
Iranian Foreign Ministry spokesman Esmail Baghaei said Tuesday that talks with Oman were focused on “establishing safe inbound and outbound shipping lanes,” routes that “uphold sovereign rights while also addressing the national security considerations of both Iran and Oman.” “The final results of these negotiations will be announced once concluded,” he added, according to Iran’s state-run IRNA news agency.
US Secretary of State Marco Rubio said progress had been made but stressed the talks were not finished, while Treasury Secretary Scott Bessent said there was a chance of a deal “today or tomorrow” to restore “freedom of movement.”
Trump said on Monday the US was in talks with Iran and called it Tehran’s “last chance” to avoid further military escalation. However, Iran has denied direct talks with Washington, saying discussions are only with Oman.
