US-Iran Negotiations Advance Toward Strait of Hormuz 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 a resolution.

Asian stocks climbed 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 all day,” Trump told Fox News’ “@ Night.” Trump added that the Strait of Hormuz “is going to be open very soon.” “If they back out again, they’re going to get hit very hard.”

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

Washington and Tehran are close to an interim deal to reopen the Strait of Hormuz with the support of Oman, 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 diplomatic progress

Trump has yet to achieve his stated war aims of dismantling Iran’s nuclear programme, limiting Tehran’s ability to attack regional enemies and creating conditions for political change inside Iran.

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

Qatar said earlier that mediators were making progress towards ending the conflict although Tehran had earlier denied that talks were taking place.

“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, according to the Emiri office of Qatar.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said talks with Oman on transit through the strait were constructive and ongoing, centered on establishing safe shipping routes. State media reported him as saying the proposed arrangement aims at safeguarding the sovereign rights and national security of both Iran and Oman.

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Iran has long claimed it should share control of the Strait of Hormuz with Oman. But Tehran last week rejected 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. All 14 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.

At least 17 seafarers have died in 64 incidents in the Strait of Hormuz since the conflict began on February 28, the United Nations’ International Maritime Organization has recorded.

Those casualties come on top of Iran’s reported death 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 and wife and their two-year-old son.

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