Trump and Iran Near Deal to Reopen Strait of Hormuz

President Donald Trump announced that a deal to reopen the Strait of Hormuz could be finalized as early as August 5 or 6, 2026. The proposed arrangement, mediated by Oman, Qatar, and Pakistan, follows a war that began with U.S. and Israeli strikes on Iran in February. The interim agreement would establish a 60-day window where inbound traffic uses Iranian-controlled northern lanes and outbound traffic uses Omani-controlled southern lanes, with a commitment to clear naval mines within 30 days.

While Trump claimed all-day negotiations with Tehran were moving nicely, the Government of Iran denied direct talks with Washington, asserting it is negotiating exclusively with Oman. A primary point of contention remains transit fees; Iran sought charges between 5% and 7% of cargo value, while the U.S. demanded a toll-free system. Some reports indicate a compromise involving ecological and management service fees rather than formal tolls.

To facilitate diplomacy, Trump halted planned massive airstrikes against Tehran and the U.S. Treasury removed sanctions from several aviation entities linked to the Islamic Revolutionary Guard Corps. Despite these steps, Iranian President Masoud Pezeshkian described the current period as the nation's most difficult since the Islamic Revolution. Market reaction was immediate, with Brent crude prices falling below $80 per barrel on hopes of restored energy flows. However, maritime instability persists, as Houthi militants in Yemen have targeted Saudi oil tankers in the Red Sea and Gulf of Aden.