The US, Iran, and Oman are reportedly close to reaching an interim agreement to reopen the Strait of Hormuz, as per sources cited by Axios news outlet. The US is aiming to make an announcement on Wednesday regarding this development.
The strategic waterway has been a contentious issue in the US-Iran conflict. Joint strikes by the US and Israel on key Iranian sites led to Iran retaliating by attacking sites across the Middle East and closing the strait.
Prior to the conflict, about 20% of global oil trade passed through the Strait of Hormuz. Its closure disrupted oil flow from the Middle East, causing market volatility and fuel price increases.
Although the US and Iran signed a Memorandum of Understanding on June 17 to end the war within 60 days, the agreement was short-lived, and conflict resumed shortly after. Negotiations for the reported interim agreement have been ongoing for several weeks.
The aim of the agreement is to reinstate a ceasefire between the US and Iran and resume talks on a nuclear deal. The potential deal would address some of Iran’s demands for increased control over traffic in the strait.
The proposed deal includes a 60-day temporary arrangement between Oman and Iran in the strait, with the possibility of extension. President Donald Trump opted against a massive bombing campaign to allow for diplomacy but may authorize major strikes if a deal is not reached soon.
President Trump stated to Fox News, “The Strait is going to be open very soon – or they’re gonna hit very hard, and then the Strait is going to be open.”