Diplomatic Push to Reopen Strait of Hormuz Amidst Tensions
US and Iran near interim agreement for critical trade route after renewed conflict, with a Wednesday announcement anticipated.
Sarah Connor
The US and Iran are reportedly nearing an interim agreement to reopen the Strait of Hormuz.
This critical trade route, once funneling 20% of global oil, now faces an uncertain future.
A Memorandum of Understanding, signed by the US and Iran on June 17, aimed to end the war within 60 days; conflict resumed less than a month later.
The potential interim agreement would establish a 60-day temporary arrangement between Oman and Iran in the Strait of Hormuz, with provisions for extension.
This proposed deal includes specific lane arrangements for inbound and outbound traffic, no tolls for 60 days, and a plan to clear naval mines within 30 days.
No tolls or fees would be charged during this 60-day period, a provision understood to meet some of Iran's demands for greater control over traffic in the Strait.
The plan draws inspiration from current arrangements behind the Strait of Malacca, though the proposal has not yet been put forward to any of the IMO's 176 member states.
US President Donald Trump stated there were "all-day negotiations" on Tuesday with Iran, having decided not to follow through on threats of a massive bombing campaign to provide more time for diplomacy.
The Strait is going to be open very soon - or they're gonna hit very hard, and then the Strait is going to be open.
Iran had previously warned that Trump could "ignite the spark of World War III" after the US issued an ultimatum; Iran refused to hold direct discussions with the US over the five-month war.
Trump claimed the Iranian regime had "begged" for negotiations, while Iran maintained that the re-opening of the waterway hinges on the US lifting its naval blockade.
Stock prices rallied to record highs on Tuesday after Treasury Secretary Scott Bessent indicated a deal between Tehran and Washington was imminent.
biggest gamble
Separately, Bill O’Reilly privately advised President Trump in February that engaging with Iran was the "biggest gamble" of his presidency.
The Israeli military issued an evacuation warning to residents of the southern Lebanese village of Mansouri, stating it had begun conducting "precise strikes" in southern Lebanon in response to a violation of the ceasefire by Hezbollah.
Elsewhere, an Indian-flagged commercial ship sank in the Red Sea off Yemen after being struck by an explosive-laden boat.