Iran Says US Deal On Hormuz Is In "Final Stage" Of Drafting

Iran said Wednesday it is in the "final stage" of drafting an agreement with Oman over the Strait of Hormuz, and US President Donald Trump has said a deal could be announced this week.

05 Aug 2026, 20:15 · NDTV

Iran said Wednesday it is in the "final stage" of drafting an agreement with Oman over the Strait of Hormuz, and US President Donald Trump has said a deal could be announced this week. That could potentially reopen the critical waterway, ease pressure on the world economy and help bring an end to the war.

But the agreement is likely to be contingent on the US lifting its blockade on Iran's ports. The Trump administration has previously ruled out any deal that would cement Iran's grip over the strait, which would amount to a major loss for the US and a break with global norms.

Iran has insisted on some measure of control over the strait, saying it will not go back to being an open international waterway, as it was before the war.

The US, along with Israel, launched the war on Feb. 28, citing various goals including toppling Tehran's government and ending its nuclear program. Those have not been achieved, and the conflict has devolved into a fight over the strait as Iran's assertion of control and attacks on shipping have ground traffic to a near-halt.

Closure of the strait, through which a fifth of the world's traded oil and natural gas once passed, has driven up the price of fuel and basic goods, roiling the global economy. Trump is also under mounting pressure to end an unpopular war ahead of US congressional elections.

Iran's Foreign Ministry spokesman, Esmail Baghaei, said that the agreement with Oman is in the "final stage" of drafting, and that a joint statement will be issued "if certain parties do not obstruct this process," apparently referring to the US

Iranian and Omani negotiators have finalized the draft deal to reopen the strait and await final approval from Iran's Supreme Leader Ayatollah Mojtaba Khamenei, two regional officials told The Associated Press on Wednesday. Khamenei is believed to have been wounded in the war's opening strikes and has not been seen in public since then.

The officials, who were briefed on the negotiations, portrayed the potential deal as a temporary solution to the dispute over the strait. They said it is tied to an agreement reached between the US and Iran in June that aimed at ending the fighting and reopening the waterway but ultimately collapsed.

The officials, who spoke on condition of anonymity to discuss the private talks, said the potential deal will pave the way for the US and Iran to resume negotiations on Tehran's nuclear program.

Earlier, they had said the potential agreement would have ships enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman. Service fees would be charged for providing security and preserving the maritime environment, the officials said.

The US has said it is strongly opposed to any arrangement that would see Iran charge fees.

Trump was asked on Tuesday evening by reporters about a report on the Axios news site that an announcement on the strait could be made on Wednesday.

"It could happen. Tomorrow or the next day," Trump said. "A lot of progress has been made."

Oil prices initially eased but later inched up. Brent crude, the international standard, was around $80 per barrel on Wednesday — still well below the levels it hit at the height of the conflict.

In recent days, Trump has alternately threatened massive strikes and voiced support for diplomatic efforts.

The Iranian-backed Houthi rebels in Yemen claimed Wednesday they had fired ballistic missiles toward a Saudi oil tanker on the Red Sea off the Saudi port of Yanbu, without providing evidence. There was no immediate comment from Saudi Arabia.

A vessel sailing in the Gulf of Aden off Yemen reported a loud explosion that happened in close proximity, the British military's United Kingdom Maritime Trade Operations center said Wednesday, adding that the crew was safe. The Houthis claimed to have fired a ballistic missile at another Saudi oil tanker.

A recent escalation between the rebels and Saudi Arabia threatens to reignite Yemen's civil war, which pitted the Houthis against a Saudi-led coalition supporting the country's government.

In July, the Houthis announced they were closing the Bab el-Mandeb Strait that leads to the Red Sea for Saudi-linked shipping. That puts additional pressure on international shipping since the Red Sea became a key alternative route for Saudi oil exports during the war.

The shaky ceasefire between Israel and the Iran-backed militant group Hezbollah grew more volatile Wednesday, as the Israeli military issued an evacuation warning to residents of the southern Lebanese village of Mansouri — the first such warning in weeks.

Later, the Israeli military said it had begun conducting "precise strikes" in southern Lebanon in response to what it described as "a blatant violation of the ceasefire" that had largely held since June 20.

The escalation came as Lebanese and Israeli negotiators met in Rome for a second day to discuss implementation of a deal under which Israeli forces are supposed to withdraw from areas they are occupying in southern Lebanon in exchange for Hezbollah's disarmament.

A State Department official said the talks in Rome ended early "due to events on the ground" but could continue on Thursday. The official, who spoke on condition of anonymity due to the sensitivity of the diplomacy, said the discussions "were extremely productive."

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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