President Donald Trump says a deal to reopen the Strait of Hormuz could be announced as early as Wednesday, raising hopes that one of the world's most important shipping routes may soon reopen.
Speaking to reporters on Tuesday, Trump said "a lot of progress has been made" and suggested an agreement could come within days. The comments followed reports that Iran and Oman are nearing a deal to restore shipping through the strategic waterway.
The Strait of Hormuz handles roughly one-fifth of global oil and natural gas shipments under normal conditions. Ongoing attacks and security threats in the region have severely disrupted traffic, pushing up energy prices and fueling concerns about the global economy.
Markets reacted positively to the prospect of a breakthrough, with Brent crude prices falling more than 1% on Wednesday.
According to regional officials, the proposed agreement would route ships entering the Persian Gulf through Iranian-controlled lanes and departing through routes managed by Oman, with security and maritime service fees potentially included. Negotiations are still ongoing, and the final terms have not been confirmed.
U.S. officials say progress is being made but emphasize that no final agreement has been reached. Secretary of State Marco Rubio said discussions are advancing, while Treasury Secretary Scott Bessent said a deal could come "today or tomorrow."
Iran said its negotiations with Oman are focused on establishing safe shipping routes while protecting the security interests of both countries.
Despite the diplomatic progress, attacks on commercial shipping have continued. Yemen's Houthi rebels claimed they targeted a Saudi oil tanker in the Red Sea, while separate incidents damaged other vessels in both the Red Sea and the Strait of Hormuz.
Trump said reopening the strait would be only the first step, adding that future efforts would focus on Iran's nuclear program.