Iranian Deputy Foreign Minister Kazem Gharibabadi denied ongoing negotiations with the US regarding the Strait of Hormuz, asserting that discussions with Oman were strictly bilateral. This contradicts US claims of progress, with President Donald Trump stating earlier that the Strait would reopen "soon" or face a harsh new attack on Iran. Trump mentioned "very good discussions" were underway, but warned of renewed strikes if Iran reneged on commitments.
Despite Iranian denials of direct talks with the US, an agreement to reopen the Strait of Hormuz is reportedly close. US officials, including Secretary of State Marco Rubio, confirmed "progress made" but noted no finality. Treasury Secretary Scott Bessent anticipated a deal within a day or two to "open the strait and move towards a more normalized position." Initial arrangements, potentially lasting 60 days without transit fees, could involve inbound traffic using a northern lane through Iranian waters and outbound vessels using a southern lane through Omani waters, with coordination from Iran. Naval mines would also be cleared from the median lane within 30 days.
The potential for a deal sent oil prices plummeting, with benchmark Brent North Sea Crude prices falling over 6% to below $79.00 per barrel. This is the first time prices have dropped below $80 since July, before hostilities resumed. While US officials are optimistic about a breakthrough within days, hurdles remain, including Iran's proposal to charge tolls on shipping, which Gulf states and the US have rejected. Iran's Deputy Foreign Minister stated that the Strait "will never return to its pre-war state."
