Vessels can be seen navigating the Strait of Hormuz from Musandam, Oman, on August 3, 2026. — Reuters
– Gaining control over this strait would be a significant concession to Iran.
– President Trump claims discussions with Iran are progressing smoothly.
– Regional sources caution against assuming a deal is close at hand.
A senior Iranian source and two regional officials informed Reuters on Wednesday that a proposed agreement between Iran and Oman would grant Tehran authority over ships entering the Gulf via the Strait of Hormuz. This marks one of the most substantial concessions made to Iran to date.
Despite what appears to be a move towards accommodating Iranian demands, the sources dismissed claims by Donald Trump that a deal to reopen the strait was imminent, clarifying that key details remain unsettled.
“The concession has already been made regarding some level of control over Hormuz,” one regional official stated.
The other regional source indicated that specifics on how “control” would be defined are still under discussion, with Gulf negotiators pushing for regional oversight of ship inspections and insisting that any fees be voluntary.
The Iranian senior official mentioned that the draft agreement on the table envisions Iran holding control over ships heading into the Gulf through the strait. A major point of contention is the extent of Iran’s authority over vessels traveling in the opposite direction.
There has been no immediate response from U.S. officials regarding these revelations about the potential agreement.
U.S. representatives have repeatedly stated they would never accept any arrangement that allows Iran dominance over the world’s crucial energy trade route.
However, in recent days, Trump and high-ranking officials in his administration have suggested a deal is near, aiming to end the conflict he initiated in February, which polls indicate most Americans oppose.
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Oil prices increased slightly Wednesday following news that Yemen’s Iran-backed Houthi movement claimed responsibility for firing on a Saudi-flagged tanker in the Red Sea, amid ongoing disruptions to global energy supplies caused by attacks in the region.
Despite the uptick, global crude prices remain near their lowest levels since early July, having sharply declined over the past two days after Trump announced a halt to upcoming attacks on Iran, citing new negotiations that could bring an end to the conflict.
While direct negotiations between Tehran and Washington have not resumed, Iran has been in talks with Oman, which controls the opposite side of the strait. Iran rejected an earlier Omani proposal last week, deeming it too limited in its influence.
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Trump stated in an interview with Fox News overnight that negotiations were “progressing well” and that significant talks took place Tuesday.
He added, “The Strait of Hormuz will be open very soon. If they back out again, they’ll face severe consequences.”
Over the weekend, Trump explained the decision to halt plans for large-scale strikes on Iran by citing ongoing negotiations, a pattern he’s repeated multiple times during the ongoing conflict.
The Iranian official downplayed the notion of an imminent agreement, noting that Foreign Minister Abbas Araqchi was currently on holiday.
“Talks are ongoing, but it’s premature to say a deal with Oman is finalized,” they said.
Another Iranian source warned that “the devil is in the details,” noting that “a single tweet from Trump could cause everything to fall apart.”
If Iran secures control over access to the strait, it would signify a major shift favoring Tehran, effectively altering the regional power balance. Prior to the war, the strait was open to all ships without fees.
Trump, who initially proclaimed “Operation Epic Fury” would force Iran into unconditional surrender, is now under pressure to exit a conflict that most U.S. voters oppose by a two-to-one margin.
Iran is reportedly demanding between 5% and 7% in cargo fees from ships passing through the strait, while Oman is proposing lower fees around 3%. The U.S. opposes any fees.
A voluntary fee system, at least in name, might serve as a compromise, although threats of Iranian attacks could deter shippers from risking transit without paying.
Despite months of U.S. military operations—including a two-week bombing campaign in July—Iran maintains control over the strait. U.S. military officials admitted in July that supplies of certain munitions were running low, and Reuters reported Tuesday that the Army had used nearly all its long-range precision missiles.
Periodic U.S. escalation responses have prompted stronger retaliations from Iran and its proxies, such as the Houthis in Yemen and the petro-chemical chokepoint at the Red Sea.
On Wednesday, the Houthis announced they had again targeted a Saudi tanker in the Red Sea, enforcing what they describe as a blockade on Saudi oil shipments through the key route bypassing the Strait of Hormuz.
Additionally, on Tuesday, an attack near Yemen sank an Indian-flagged vessel; all 14 crew members, including 13 Indians, were rescued. Yemeni government factions opposed to the Houthis accused them of orchestrating that attack.