US and Iran near a deal to reopen the Strait of Hormuz

 

US and Iran near a deal to reopen the Strait of Hormuz

The US, Iran, and Oman are closing in on an interim arrangement to reopen the Strait of Hormuz, one of the world's most important oil shipping routes, after months of conflict between Washington and Tehran. According to regional sources and a US official, the parties were aiming for a Wednesday announcement, with plans to clear naval mines from the strait's median lane within 30 days before opening it to two-way traffic under a longer-term arrangement to be worked out between Oman and Iran. Axios

The proposed 60-day arrangement would send inbound commercial ships through Iranian waters and outbound traffic through Omani waters, coordinated with Iran, while barring tolls or transit fees during the interim window. Regional officials described a version of the deal in which ships would enter the Gulf via an Iranian-controlled route and exit via an Omani-controlled one, with service fees charged for security and environmental upkeep, though negotiators cautioned the final shape of any agreement could still change. Iran InternationalPBS

Treasury Secretary Scott Bessent told CNBC there was a real chance of a deal within a day, framing it as a step toward "freedom of movement" for shipping rather than a toll arrangement, and said falling energy, fertilizer, and industrial gas prices could follow once the backlog of vessels stuck in the Persian Gulf clears. Secretary of State Marco Rubio struck a more cautious tone, saying talks had progressed but weren't finalized, while continuing to warn that giving Iran control over the strait would set a troubling precedent for other maritime chokepoints.

This is not the first time a deal has appeared close only to collapse: a prior understanding reached roughly three weeks earlier fell apart when Iran resumed attacks on tankers, touching off nearly two weeks of intense fighting that brought the two countries close to all-out war. President Trump said over the weekend that he called off a large-scale bombing campaign against Iran to give diplomacy more time, while warning that strikes remain on the table if talks collapse again. The uncertainty has been whipsawing oil markets, with crude prices falling sharply on optimism this week even as Iran has publicly denied it is negotiating directly with Washington. Axios