Trump Says US-Iran Talks Show Progress As Hopes Rise For Strait Of Hormuz Deal

US President Donald Trump said his administration held "very good discussions" with Iran during day-long negotiations on Tuesday, raising expectations that an agreement to ease the five-month conflict could be within reach. His remarks came as oil prices fell and Asian stocks rose on Wednesday after Wall Street touched record highs amid hopes that shipping through the blockaded Strait of Hormuz could soon resume.

The latest diplomatic developments come as Washington and Tehran continue negotiations over reopening the Strait of Hormuz, although Iran has maintained that no agreement will be reached while the United States continues to issue military threats. According to Reuters, the Strait of Hormuz normally carries about a fifth of global oil and liquefied natural gas shipments.

"They had an all-day negotiation," Trump told Fox News' "@ Night" show. The Strait of Hormuz "is going to be open very soon," Trump added. "If they back out again, they are going to get hit really hard."

Trump has often threatened massive strikes if Tehran did not reach an agreement before later pointing to progress in talks that have so far failed to end hostilities.

According to Reuters, Axios, citing two regional sources and a US official, reported that the United States and Iran were closing in on an interim agreement to reopen the Strait of Hormuz with the agreement of Oman, which controls part of the waterway. The report said Washington was aiming for an announcement on Wednesday.

However, Iranian state media, citing an informed source, said an agreement with Oman on the strait would be delayed "as long as the United States continues to threaten Iran."

Qatar, Oman push diplomatic efforts

Iran has halted most traffic through the Strait of Hormuz while Washington continues to maintain a blockade on Iran-related shipping and ports.

Qatar had earlier said mediators were making progress in efforts to end the conflict, even after Tehran denied that talks were underway.

Reuters reported that Trump and Qatar's Emir Sheikh Tamim bin Hamad Al Thani discussed efforts to narrow differences between Washington and Tehran and improve the prospects for a lasting settlement during a phone call on Tuesday, according to Qatar's Emiri office.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said talks with Oman over transit through the strait were positive and continuing, with discussions focused on establishing safe shipping lanes. State media reported that the route being negotiated was aimed at ensuring the sovereign rights and national security of both Iran and Oman.

Iran has long demanded control over the Strait of Hormuz, which it says it should share with Oman on the opposite shore. However, Tehran rejected an Omani proposal last week that would have allowed shared oversight and the collection of voluntary fees from ships.

Trump has yet to achieve the objectives he set out at the start of the war: dismantling Iran's nuclear programme, curbing its ability to attack regional rivals and creating conditions for Iranians to overthrow their clerical rulers.

Conflict persists despite talks

Meanwhile, Yemen's Iran-aligned Houthis have continued their naval blockade on Saudi Arabia in the Red Sea, further restricting oil export routes. According to Reuters, a projectile struck an Indian-flagged vessel near Yemen, causing it to capsize and sink, although all 14 seafarers on board were rescued. Yemen blamed the attack on the Houthis.

The United Nations' International Maritime Organization has reported at least 17 seafarer deaths across 64 incidents in the Strait of Hormuz since the war began on February 28.

Those figures are in addition to the Iranian government's toll of 50 people killed and 500 wounded in US strikes since hostilities resumed in late June. That figure was released before Iran said a US strike on Qeshm in late July killed a husband, wife and their two-year-old son.

In total, Iran has reported more than 3,400 deaths since the United States and Israel launched the war on February 28, while the United States has reported 18 military personnel killed.