President Donald Trump announced that a deal to reopen the Strait of Hormuz is close, with an official statement expected Wednesday. Brent crude settled near $80 a barrel, easing from earlier spikes. The announcement is poised to affect global oil flows and market sentiment as shipping through the narrow waterway remains severely limited.
Iranian and Omani negotiators have completed a draft agreement that awaits approval from Iran’s supreme leader, while the United States frames the talks as negotiations with Tehran. Trump reiterated opposition to any tolls on the strait. Simultaneously, Houthi rebels claimed a missile strike on a Saudi tanker and an Indian‑flagged vessel was hit by an explosive boat in the Red Sea.
Oil markets responded with Brent hovering around $80, while equity indices rose on optimism of restored flow. Maritime data show only six commercial ships crossed the strait on Monday, down from seven the previous day, underscoring the continued bottleneck. The lingering security incidents keep freight rates and insurance premiums elevated despite the diplomatic push.
Washington describes the Omani channel as direct negotiations with Iran, whereas Tehran calls it a technical discussion with Oman, reflecting internal political splits. Iranian factions range from those seeking economic relief through a Hormuz deal to hardliners viewing any accord as an ideological defeat, complicating the path to a mutually acceptable arrangement.