Trump says a Strait of Hormuz reopening deal could come as early as Wednesday or Thursday.
Iran and Oman are negotiating safe shipping routes through the key Persian Gulf waterway.
Oil prices eased as markets reacted to hopes of a possible agreement.
US President Donald Trump said a deal on reopening the Strait of Hormuz could come as early as Wednesday or Thursday, as Iran and Oman moved towards an agreement to reopen the critical waterway and potentially help bring an end to the war.
Trump was asked by reporters travelling with him in California about an Axios report that an announcement on the Strait of Hormuz could be made on Wednesday.
“It could happen. Tomorrow or the next day,” he said, speaking on Tuesday evening California time, which was already Wednesday morning in the Middle East. “A lot of progress has been made.”
Oil prices eased on hopes of progress towards a deal that would allow oil tankers to freely exit the Persian Gulf again and deliver crude around the world. Brent crude, the international benchmark, slipped 1.2 per cent to $78.43 per barrel early Wednesday.
According to Associated Press, the possible agreement emerging from Iran-Oman talks would see ships enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman, two regional officials said. The officials, who spoke on condition of anonymity due to the sensitive nature of the negotiations, said service fees would be charged for providing security and preserving the maritime environment.
The Trump administration has previously ruled out any deal that would give Iran control over the strait, which was an open international waterway before the US and Israel attacked Iran on February 28. About one-fifth of the world’s oil and natural gas passed through the strait, but shipping through the waterway has been reduced to a trickle at best by Iran’s attacks since the start of the war.
In an exchange with reporters on Monday, Trump reiterated his opposition to tolls being charged in the strait.
“I’m not going to let them charge,” Trump said. “Anybody’s going to charge, we’ll charge.”
The regional officials said negotiations were still underway and the final agreement could take a different form, with any deal linked to lifting the US blockade on Iran’s ports, Associated Press reported.
Iranian Foreign Ministry spokesman Esmail Baghaei said on Tuesday that Tehran’s 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 confirmed that progress had been made in those talks, “but not finality yet.”
Rubio has previously ruled out any deal that would give Iran control over the strait, saying last month that would create a “very dangerous precedent” for other parts of the world.
US Treasury Secretary Scott Bessent told CNBC that “there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict.
Qatar’s emir, Sheikh Tamim bin Hamad Al Thani, said he also spoke to Trump by phone on Tuesday as the Arab country tried to broker a resolution to the war.
Al Thani’s office said the two discussed ways to bridge the divide “in a way that enhances the prospects of reaching a sustainable diplomatic settlement to the crisis.”
Trump is under pressure to end an unpopular war that has driven up gas prices ahead of midterm elections and drawn down US supplies of some munitions. In recent days, he has again threatened massive strikes and voiced support for diplomatic efforts.
Trump said on Monday that the US was in talks with Iran, describing it as Tehran’s “last chance” to reach a deal and avoid another US military escalation.
“The first phase is the opening of the straits. The second phase will be the denuclearization,” Trump said. “And that will take a little while.”
Iran has denied it is negotiating with the US, saying the talks are only with Oman.
An Indian-flagged commercial ship sank Tuesday in the Red Sea off Yemen after being struck by an explosive-laden boat, Yemeni and Indian authorities said.
Yemen’s coast guard rescued the crew, which included 13 Indians and a Yemeni.
There was no immediate claim of responsibility, but Yemen’s Iran-backed Houthi militants have repeatedly struck ships travelling through the Red Sea near Yemen.
Last month, the Houthis announced they were closing the Bab el-Mandeb Strait that leads to the Red Sea for Saudi-linked shipping in retaliation for the kingdom’s blockade on Yemen and an attack on the international airport in Yemen’s rebel-held capital, Sanaa.
Earlier Tuesday, a cargo ship reported being “hit by an unknown projectile” while traversing the Strait of Hormuz, according to the United Kingdom Maritime Trade Operations Centre.
The centre said the reported strike damaged the vessel at around 2 am local time while it was about 37 kilometres northeast of Al Khasab, a port city in Oman. The British maritime security firm Ambrey said the ship sustained damage.
