President Donald Trump said Tuesday evening that a deal to reopen the Strait of Hormuz could be finalized within days, potentially ending a crisis that's throttled global oil markets and sent fuel prices soaring. "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 Axios reported that an announcement on the strait could arrive Wednesday. Iranian and Omani negotiators have finalized a draft deal to reopen the waterway, according to officials, but they're waiting for final approval from Iran's Supreme Leader Ayatollah Mojtaba Khamenei, who hasn't been seen publicly since being wounded in the war's opening strikes.
Economic Pressure Mounts
Closure of the strait has created economic havoc well beyond the Middle East. A fifth of the world's oil and natural gas once passed through this chokepoint. Now traffic's reduced to a trickle, driving up fuel and basic goods prices globally and roiling markets. The Trump administration faces mounting pressure to end an unpopular war ahead of midterm congressional elections, with voters feeling the pinch at gas pumps and grocery stores.
The potential deal represents 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 agreement collapsed. Officials said the new arrangement would pave the way for resumed negotiations on Tehran's nuclear program, though the administration had previously ruled out any deal giving Iran control over what was an open international waterway before the war.
Fee Dispute Threatens Agreement
The proposed agreement would have ships enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman. Iran wants to charge service fees for security and preserving the maritime environment. The U.S. is strongly opposed to any arrangement that would see Iran collect fees on international shipping.
Iran's Foreign Ministry spokesman, Esmail Baghaei, said 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." He appeared to be referring to the U.S.
Attacks Continue Despite Diplomatic Progress
Even as negotiators worked toward a deal, attacks on shipping continued. 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, and there was no immediate comment from Saudi Arabia.
The attack marks 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. 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.
Lebanon Tensions Flare
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 Strait of Hormuz closure has demonstrated how quickly regional conflicts can devastate global commerce and American consumers' wallets. Any deal that allows Iran to collect fees on international shipping sets a dangerous precedent, effectively rewarding Tehran for closing a waterway it never controlled. The administration's willingness to negotiate under economic and political pressure raises questions about whether temporary fixes will simply embolden Iran's regional aggression. Meanwhile, continued Houthi attacks on commercial shipping and renewed Israel-Hezbollah tensions suggest that even if the strait reopens, broader regional stability remains elusive. The economic costs of this conflict, borne by American families through higher prices, underscore the real-world consequences of Middle Eastern instability and the limits of diplomatic solutions that don't address underlying security threats from Iranian proxies.