US, Iran Edge Closer To Hormuz Deal

U.S President Donald Trump said his administration held “very good discussions” with Iran during day-long negotiations on Tuesday, raising hopes that the five-month conflict could soon move toward a resolution.

Oil prices fell while Asian stocks advanced on Wednesday after Wall Street reached record highs amid optimism that an agreement could restore shipping through the blocked Strait of Hormuz.

“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 repeatedly warned of large-scale military action if Tehran failed to reach an agreement, while also pointing to periodic progress in negotiations that have yet to end the conflict.

Axios, citing two regional sources and a U.S. official, reported that Washington and Tehran are close to an interim agreement, with Oman’s support, to reopen the Strait of Hormuz. The report said the United States was aiming to announce the deal on Wednesday.

However, Iranian state media quoted an informed source as saying any agreement with Oman over the strategically vital waterway would be delayed “as long as the United States continues to threaten Iran.”

Qatar reports diplomatic progress

Trump has yet to achieve his stated war objectives, including dismantling Iran’s nuclear programme, limiting Tehran’s ability to strike regional rivals and creating conditions for political change inside Iran.

Iran has largely halted traffic through the Strait of Hormuz, while Washington continues its blockade of Iran-linked shipping and ports.

Qatar earlier said mediators were making progress toward ending the conflict, despite Tehran previously denying that negotiations were taking place.

According to Qatar’s Emiri office, Trump and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani discussed efforts during a phone call on Tuesday to bridge differences between Washington and Tehran and improve prospects for a lasting settlement.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said discussions with Oman on transit through the strait were constructive and ongoing, focusing on establishing safe shipping routes. State media quoted him as saying the proposed arrangement seeks to protect the sovereign rights and national security of both Iran and Oman.

READ ALSO: Iran, Oman End Hormuz Talks Without Breakthrough

Iran has long argued it should jointly control the Strait of Hormuz with Oman. However, Tehran rejected an Omani proposal last week that would have introduced shared oversight and voluntary transit fees for ships.

Meanwhile, Yemen’s Iran-aligned Houthis have maintained a naval blockade on Saudi Arabia in the Red Sea, further disrupting regional oil export routes. Indian officials said all 14 crew members were rescued after a projectile struck and sank an Indian-flagged vessel near Yemen, an attack Yemen blamed on the Houthis.

The United Nations’ International Maritime Organization has recorded at least 17 seafarer deaths in 64 incidents in the Strait of Hormuz since the conflict began on February 28.

Those casualties are in addition to Iran’s reported toll of 50 people killed and 500 wounded in U.S. strikes since fighting resumed in late June. Iran later said a U.S. strike on Qeshm in late July killed a husband, wife and their two-year-old son.

Overall, Iran says more than 3,400 people have died since the U.S. and Israel launched the war on February 28, while the United States has reported 18 military personnel killed.

Reuters