President Trump said Tuesday's all-day negotiation with Iran showed progress toward reopening the Strait of Hormuz, even as he warned he could hit Tehran "really hard" if talks collapse. The statement comes as closure of the strait continues to drive up fuel and basic goods prices far beyond the Middle East, straining household budgets worldwide.
Trump told reporters traveling with him in California that a deal could come "tomorrow or the next day," adding that "a lot of progress has been made." Iranian and Omani negotiators have finalized a draft deal to reopen the strait, according to the AP, and are now awaiting final approval from Iran's Supreme Leader Ayatollah Mojtaba Khamenei.
Economic Pressure Mounts
The strait, through which a fifth of the world's oil and natural gas once passed, has seen traffic reduced to a trickle. It was an open international waterway before the war. The closure has roiled the global economy, with working families bearing the brunt of price increases that reach far beyond energy costs into everyday necessities.
Trump faces mounting pressure to end an unpopular war ahead of midterm congressional elections. The potential deal is tied to an agreement reached between the U.S. and Iran in June that aimed at ending the fighting and reopening the waterway but ultimately collapsed. The Trump administration had previously ruled out any deal that would give Iran control over the strait.
Regional Violence Escalates
The Iranian-backed Houthi rebels in Yemen claimed Wednesday they had fired ballistic missiles toward a Saudi oil tanker in the Red Sea. Brig. Gen. Yahya Saree said in a prerecorded statement that the vessel was targeted off the Saudi port city of Yanbu, though 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 said. Yemen's coast guard rescued the crew.
Another vessel sailing in the Red Sea off Yemen reported a loud explosion nearby. The British military's United Kingdom Maritime Trade Operations center said the ship's crew was safe.
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 are 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 closure of the Strait of Hormuz has imposed real costs on working families across the globe, not just in the Middle East. When a fifth of the world's oil and natural gas stops flowing, prices for fuel and basic goods rise everywhere, hitting those least able to afford it hardest. The mounting economic pressure explains why Trump faces growing demands to end a war that has dragged on without clear resolution. Any deal that reopens the strait would provide immediate relief to households struggling with inflated costs, but the Trump administration's previous insistence on controlling terms raises questions about whether diplomacy can succeed where military pressure has failed. Meanwhile, the escalating violence in Yemen and Lebanon shows how regional conflicts feed off one another, creating humanitarian crises that demand coordinated international response rather than unilateral threats.