Iran and Oman make progress on a deal to reopen the Strait of Hormuz, officials say

CAIRO (AP) — Iran and the Gulf Arab state of Oman have made progress toward a deal to reopen the Strait of Hormuz, a potential breakthrough that could help wind down the war in the Middle East, regional officials said Tuesday.

Under the emerging agreement, ships would enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman, with service fees charged for providing security and preserving the maritime environment, two regional officials told The Associated Press.

They said negotiations are still underway and that the final agreement could take a different form, with any deal linked to lifting the U.S. blockade on Iran’s ports. The officials spoke on condition of anonymity to discuss the sensitive negotiations unfolding behind closed doors.

Any agreement formalizing Iran’s control of the strait would mark a significant strategic victory for Tehran. For that reason, the U.S. could seek to block the deal by refusing to lift the blockade. The strait was an open international waterway before the U.S. and Israel attacked Iran on Feb. 28.

A U.S. official familiar with the negotiations said that any “temporary” routes established through the strait would not involve approvals by Iran or charges. The official, who was not authorized to comment publicly and spoke on condition of anonymity, said the U.S. remains committed to returning to the status quo in which “no party controls the lanes or the ability to transit through them.”

U.S. President Donald Trump is under mounting pressure to end an unpopular war that has driven up gas prices ahead of midterm elections and drawn down U.S. supplies of some munitions. In recent days, he has again whipsawed between threatening massive strikes and voicing support for diplomatic efforts.

In an exchange with reporters on Monday, Trump reiterated his public stance that he’s opposed to tolling in the strait. “I’m not going to let them charge,” Trump said. “Anybody’s going to charge, we’ll charge.”

US and Iranian officials confirm progress without giving details

Iranian Foreign Ministry spokesman Esmail Baghaei said the bilateral talks with Oman are focused on “establishing safe inbound and outbound shipping lanes,” routes that “uphold sovereign rights while also addressing the national security considerations of both Iran and Oman.”

“The final results of these negotiations will be announced once concluded,” he added, in remarks carried by Iran’s state-run IRNA news agency.

U.S. Secretary of State Marco Rubio, speaking to reporters at the State Department, said “there’s been progress made in those talks, but not finality yet. We’re hoping that will happen very shortly.”

Rubio has previously ruled out any deal that would give Iran control over the strait, saying last month that it would create a “very dangerous precedent” for other parts of the world.

Treasury Secretary Scott Bessent told CNBC that “there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict.”

Asked whether there would be tolls for movement through the strait, Bessent said: “I think it would be freedom of movement.”

The potential agreement between Iran and Oman was first reported by The New York Times.

Trump says this is Iran’s ‘last chance’

A fifth of the world’s traded oil and gas transited the waterway before the war. Iranian attacks on ships have largely shut it down, causing a spike in the price of fuel, fertilizer and other goods, and rattling economies far beyond the Middle East.

Trump said Monday that the U.S. was in talks with Iran, saying it was Tehran’s “last chance” to reach a deal and avoid another U.S. military escalation.

“The first phase is the opening of the straits. The second phase will be the denuclearization,” Trump said. “And that will take a little while.”

Iran has denied it is negotiating with the U.S., saying the talks are only with Oman.

The two sides reached an interim agreement in June to reopen the strait and launch 60 days of talks aimed at ending the war and resolving the longstanding dispute over Iran’s nuclear program. That agreement collapsed over escalating hostilities focused on the strait, and the deadline is around two weeks away.

Cargo ship reports strike in Strait of Hormuz

Meanwhile, a cargo ship reported being “hit by an unknown projectile” in the strait off the coast of Oman, the United Kingdom Maritime Trade Operations Center said, without providing further information on the ship, including what flag it was sailing under or whether it was carrying cargo.

The ship sustained damage, according to British maritime security firm Ambrey, which did not elaborate.

In recent weeks, Iran had repeatedly attacked ships using a route running close to Oman that is overseen by the U.S. military and intended to bypass Tehran’s control.

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Madhani and Lee reported from Washington.

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