Trump says deal to reopen Strait of Hormuz could come as early as Wednesday

U.S. President Donald Trump indicated on Tuesday evening that a potential deal concerning the Strait of Hormuz could be announced on Wednesday or Thursday. Speaking to reporters accompanying him in California, Trump stated, "It could happen. Tomorrow or the next day." He added, "A lot of progress has been made."

The possible agreement emerging from Iran and Oman's talks proposes that ships would traverse the Persian Gulf via routes controlled by Iran and Oman respectively. According to two regional officials, service fees would be charged for these routes, which would cover security and environmental preservation. The officials spoke anonymously, as the negotiations are highly sensitive.

Brent crude, the global benchmark, experienced a 1.2% drop to $78.43 per barrel earlier on Wednesday, reflecting optimism about the progress towards a deal. This deal would allow oil tankers to freely exit the Persian Gulf and transport crude oil globally once more. The strait, once open, is now controlled by Iran and has been blocked since Feb. 28 due to attacks by Iran on U.S. and Israeli interests.

Prior to the talks, the Trump administration had firmly opposed any deal that would grant Iran control over the strait. Oil and natural gas, comprising about one-fifth of global supply, have largely bypassed the strait due to frequent Iranian attacks since the beginning of the war. The U.S. president reiterated on Monday his opposition to any tolls being imposed on the strait, stating, "I’m not going to let them charge.

Anybody’s going to charge, we’ll charge." The regional officials emphasized that the talks are ongoing, and the final agreement may differ, potentially incorporating the lifting of the U.S. blockade on Iran’s ports.