US and Iran Move Closer to Hormuz Strait Agreement

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

Asian stocks rose and oil prices fell Wednesday as Wall Street hit record highs on optimism that an agreement may reopen the blocked Strait of Hormuz for shipping.

“We had a negotiation going on all day,” Trump told Fox News’ “@ Night.” The Strait of Hormuz “is going to be open very soon,” added Trump. “If they back out again, they’re going to get hit pretty hard.”

Trump has repeatedly warned of major military action if Tehran does not reach an agreement, while also pointing to periodic progress in talks that have yet to end the conflict.

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

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

Qatar says progress in diplomacy

Trump has yet to win his declared war goals, which include dismantling Iran’s nuclear programme, constraining Tehran’s capacity to strike regional foes and creating conditions for political change inside Iran.

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

Earlier, Qatar said mediators were making progress toward ending the conflict, although Tehran previously denied that negotiations were taking place.

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

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said talks with Oman about transit through the strait were constructive and ongoing, focused on establishing safe shipping routes. He was quoted by state media as saying the proposed arrangement is meant to protect the sovereign rights and national security of both Iran and Oman.

Iran has long argued it should share control of the Strait of Hormuz with Oman. But Tehran rejected last week an Omani proposal introducing shared oversight and voluntary transit fees for ships.

Meanwhile, Yemen’s Iran-backed Houthis have imposed a naval blockade on Saudi Arabia in the Red Sea, adding to disruptions along regional oil export routes. Fourteen crew members were rescued after a projectile hit and sank an Indian-flagged vessel off Yemen, Indian officials said, an attack Yemen blamed on the Houthis.

Since the conflict began on February 28, the United Nations’ International Maritime Organization has recorded 64 incidents in the Strait of Hormuz that have resulted in at least 17 seafarers’ deaths.

Those casualties come in addition to Iran’s reported death toll of 50 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 and wife and their two-year-old son.

Iran has said more than 3,400 people have been killed overall since the U.S. and Israel began their war on February 28, and the United States has reported 18 military personnel killed.