Trump says Strait of Hormuz deal could be announced by Wednesday

U.S. President Donald Trump told reporters in California that an announcement on a deal to reopen the Strait of Hormuz could come "tomorrow or the next day," referring to Wednesday or Thursday in the Middle East. He said progress had been made in the negotiations between Iran and Oman.

Oil markets responded positively, with Brent crude falling 1.2% to $78.43 a barrel on Wednesday morning.

According to two regional officials who spoke on condition of anonymity, the tentative agreement would allow ships to enter the Persian Gulf via an Iranian-controlled route and exit through an Omani-controlled route, with service fees charged for security and environmental protection. The officials said the talks are ongoing and the final terms could differ, potentially linking the arrangement to the lifting of the U.S. blockade on Iranian ports.

Iranian Foreign Ministry spokesman Esmail Baghaei said the discussions with Oman focus on establishing safe inbound and outbound shipping lanes that respect sovereign rights and security concerns of both countries. He added that the final results will be announced once concluded.

U.S. Secretary of State Marco Rubio confirmed progress in the talks but said no final agreement has been reached. Treasury Secretary Scott Bessent told CNBC that a deal could be announced within a day, moving toward a more normalized situation in the conflict.

Qatar’s emir, Sheikh Tamim bin Hamad Al Thani, also spoke with Trump by phone about efforts to bridge the divide and pursue a diplomatic settlement.

In related incidents, an Indian-flagged commercial vessel sank in the Red Sea after being struck by an explosive-laden boat, and a cargo ship reported damage from an unknown projectile while transiting the Strait of Hormuz. Both incidents were reported by maritime authorities.

The United States has previously opposed any arrangement that would give Iran control over the strait, citing concerns about setting a dangerous precedent.