The temporary arrangement could restore a U.S.-Iran ceasefire, restart nuclear talks and ease shipping and energy market risks if finalized as early as Wednesday.
The United States, Iran and Oman are close to a temporary agreement to reopen the Strait of Hormuz, with the U.S. aiming to announce the arrangement as early as Wednesday, Axios reported. The deal has been negotiated for weeks and is designed to restore a U.S.-Iran ceasefire while helping restart talks over a nuclear agreement. The proposal under discussion would create a 60-day interim arrangement that could be extended. Under the plan, ships entering the Persian Gulf would travel through a northern channel in Iranian waters, while vessels leaving the Strait of Hormuz for the Arabian Sea would use a southern channel in Omani waters in coordination with Iran. No transit fees would be charged during the temporary period, and the parties would clear mines from the central shipping lane within 30 days. Once that work is completed, the middle channel would reopen for two-way traffic and support negotiations on a longer-term framework. Trump had previously considered a large-scale military strike on Iran but decided on Saturday to pause action to leave room for diplomacy. The report said Steve Witkoff, Iranian Foreign Minister Abbas Araghchi and Omani Foreign Minister Badr al-Busaidi have recently held multiple rounds of communication, while Qatar, Pakistan and Saudi Arabia joined Oman in mediation efforts. Araghchi agreed to the deal in principle over the weekend, according to the report, though approval was still required from Iran's top leadership and Supreme National Security Council. A U.S. official and regional sources said Iran completed that approval process on Tuesday. If implemented, the arrangement may reduce Middle East shipping risks, lower uncertainty around global energy supplies and influence oil prices and sentiment toward risk assets. Earlier tensions around the Strait of Hormuz had raised concern that global oil flows could be disrupted.