U.S. President Donald Trump said a breakthrough agreement to reopen the Strait of Hormuz could be reached as early as Wednesday, as negotiations involving Iran and Oman continue to advance toward restoring access to one of the world’s most strategically important shipping routes.
The prospect of a deal comes amid efforts to ease tensions after months of conflict, with reopening the Strait of Hormuz now emerging as a central objective in broader diplomatic efforts to end the war.
While the United States and Israel initially said their military campaign was aimed at dismantling Iran’s nuclear program and weakening its government, the conflict has increasingly centered on control of the narrow waterway after Iranian attacks and security threats severely disrupted commercial shipping.
Before the conflict, nearly one-fifth of the world’s traded oil and liquefied natural gas passed through the Strait of Hormuz. The prolonged disruption has driven up global energy prices, increased transportation costs and fueled inflation in markets around the world.
Trump also faces growing political pressure to bring the conflict to a close ahead of congressional midterm elections later this year.
Speaking to reporters while traveling in California on Tuesday evening, the president was asked about an Axios report suggesting an announcement on the Strait of Hormuz could come as early as Wednesday.
“It could happen. Tomorrow or the next day,” Trump said. “A lot of progress has been made.”
Financial markets reacted positively to signs of diplomatic progress.
Brent crude, the international oil benchmark, fell 1.2% in early Wednesday trading to $78.43 a barrel as investors anticipated that shipping through the Strait of Hormuz could soon resume.
The United States and Iran previously reached an agreement in June to reopen the waterway, but renewed hostilities later derailed implementation of the deal.
In recent days, Trump has alternated between warning of additional military action against Iran and expressing optimism that diplomacy could produce a lasting agreement.
Negotiators are now working to secure a new arrangement that would restore maritime traffic through the strait while helping reduce tensions across the Gulf region.
