The latest reports suggest that the US, Iran, and Oman are close to reaching an interim agreement to reopen the Strait of Hormuz. According to Axios news outlet, the US is aiming to make an announcement regarding this development on Wednesday.
The Strait of Hormuz has been a major point of contention in the US-Iran conflict. Following joint strikes by the US and Israel on key Iranian sites in February, Iran retaliated by attacking various locations across the Middle East and closing the strait, disrupting the flow of global oil trade.
Prior to its closure, about 20% of the world’s oil trade passed through the strait, causing market volatility and fuel price increases. A Memorandum of Understanding was signed by the US and Iran on June 17 to end the conflict within 60 days, with efforts underway to secure a lasting peace agreement, restore international shipping through the strait, and address issues related to Iran’s nuclear program.
Despite initial progress, the conflict resumed shortly after the MoU was signed. Negotiations for an interim agreement have been ongoing for weeks, aiming to reinstate the ceasefire between the US and Iran and revive talks on a nuclear deal.
The proposed deal would address some of Iran’s demands for increased control over traffic in the strait. It includes a temporary arrangement between Oman and Iran for 60 days, with the possibility of extension. Notably, US President Donald Trump opted against a massive bombing campaign to allow for further diplomatic efforts, warning of potential strikes if a deal is not reached promptly.
Trump emphasized on Fox News that the strait will reopen soon or face significant consequences.