President Donald Trump said Tuesday evening that a deal to reopen the Strait of Hormuz—whose closure has driven up fuel and food prices worldwide—could be announced as early as Wednesday or Thursday. "It could happen. Tomorrow or the next day," Trump told reporters traveling with him in California, adding that "a lot of progress has been made."
The comments came after an Axios report indicated an announcement on the strait could be imminent. Iranian and Omani negotiators have finalized a draft deal to reopen the waterway, according to officials, and they're now awaiting final approval from Iran's Supreme Leader Ayatollah Mojtaba Khamenei. Khamenei hasn't been seen in public since the war's opening strikes, when he's believed to have been wounded.
A Global Economic Crisis
The closure of the strait has had devastating consequences far beyond the region. A fifth of the world's oil and natural gas once passed through this waterway. Now it's reduced to a trickle. Fuel prices have spiked. Basic goods cost more. The global economy has been roiled by the blockade, with working families bearing the brunt of higher costs at the pump and the grocery store.
The potential deal would establish a temporary solution tied to an agreement the U.S. and Iran reached in June that aimed at ending the fighting and reopening the waterway. That earlier agreement collapsed. Officials said the new arrangement would pave the way for the U.S. and Iran to resume negotiations on Tehran's nuclear program—a critical step toward regional stability.
Dispute Over Fees Threatens Progress
Under the proposed agreement, ships would enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman. Iran would charge service fees for security and preserving the maritime environment. The U.S. is strongly opposed to any arrangement that would see Iran charge fees for passage through what was an open international waterway before the war.
Iran's Foreign Ministry spokesman, Esmail Baghaei, said the agreement with Oman is in the "final stage" of drafting. He added that a joint statement will be issued "if certain parties do not obstruct this process"—an apparent reference to the U.S. The Trump administration had previously ruled out any deal that would give Iran control over the strait.
Political Pressure Mounts
Trump faces mounting pressure to end an unpopular war ahead of midterm congressional elections. The conflict's economic impact on American households has become a political liability, with voters feeling the pinch every time they fill their gas tanks or shop for groceries.
Even as hopes increased for a deal, attacks on shipping continued. The Iranian-backed Houthi rebels in Yemen claimed Wednesday they'd fired ballistic missiles toward a Saudi oil tanker in the Red Sea. Brig. Gen. Yahya Saree, a military spokesman for the Houthis, said in a prerecorded statement that the vessel was targeted off the Saudi port city of Yanbu. He didn't provide evidence. There was no immediate comment from Saudi Arabia.
The attack was part of a recent escalation between the rebels and Saudi Arabia that threatens to reignite Yemen's civil war. In July, the Houthis announced they were closing the Bab el-Mandeb Strait that leads to the Red Sea for Saudi-linked shipping. On Tuesday, an Indian-flagged commercial ship sank in the Red Sea off Yemen after being struck by an explosive-laden boat. Yemeni and Indian authorities confirmed the attack. Yemen's coast guard rescued the crew. Another vessel sailing in the Red Sea off Yemen reported a loud explosion nearby, though the British military's United Kingdom Maritime Trade Operations center said the ship's crew was safe.
Fragile Ceasefire Under Strain
The already shaky ceasefire between Israel and Iran-backed Lebanese militant group Hezbollah grew more volatile Wednesday. The Israeli military issued an evacuation warning to residents of the southern Lebanese village of Mansouri—the first such warning in weeks. Israel said it was responding to Hezbollah's violation of the ceasefire agreement, which had largely held since June 20.
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" by Hezbollah. 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're occupying in southern Lebanon in exchange for disarmament of Hezbollah.
A State Department official said Wednesday that the second day of talks in Rome had ended early "due to events on the ground" but could continue on Thursday. The official said the "discussions focused on a range of political and military issues and were extremely productive."
Why This Matters:
The reopening of the Strait of Hormuz would provide immediate relief to millions of families struggling with inflated fuel and food costs caused by the waterway's closure. Working-class households have borne the economic burden of this conflict, paying more for necessities while corporate profits in the energy sector have soared. A deal would also create space for renewed diplomacy on Iran's nuclear program—a pathway to preventing further military escalation that could draw in more countries and cost more lives. The ongoing attacks in the Red Sea and the fragile Israel-Hezbollah ceasefire demonstrate how regional conflicts interconnect, threatening to spiral into broader wars that displace civilians and destabilize entire populations. Multilateral diplomacy, backed by international institutions and enforceable agreements, remains the only sustainable path to protecting both regional security and the global economy that millions depend on for their livelihoods.