Tehran [Iran], August 3 (ANI): Iranian Foreign Minister Abbas Araghchi stated on Sunday that negotiations between Tehran and Muscat regarding the management of the Strait of Hormuz are 'nearing completion.'

Updating the Cabinet on the status of discussions with Oman, Araghchi highlighted significant headway in the dialogue, according to Iran's state-run IRNA news agency.

He remarked that the parleys are 'nearing completion and in their final stages', while withholding further specifics.

The development coincides with US President Donald Trump announcing on Saturday that Washington and Israel have concurred on deferring planned military strikes on Iran, maintaining that the 'parameters' of a potential agreement have been established.

Military hostilities between the adversary nations erupted on February 28 following surprise joint strikes by the US and Israel on Iranian targets. Subsequent rounds of intermittent diplomacy have since produced periods of fragile calm.

Fears of a fresh regional escalation had surged last month following a resurgence in strikes. Trump had previously threatened to target Iran 'very hard', with reports indicating potential strikes on key energy infrastructure, putting American diplomatic missions across the Middle East on high alert.

However, the US President signalled a shift in strategy following intense diplomatic engagements, including a conversation with Saudi Arabia's Crown Prince Mohammed bin Salman.

Taking to his Truth Social platform, Trump stated, 'We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the parameters of a deal have been agreed to.'

He added, 'Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL.'

While the exact parameters of the diplomatic negotiations referenced by the US leader remain unclear, Iranian media outlets refuted assertions that Tehran had solicited a pause in American military action.

The Strait of Hormuz, a critical maritime corridor for global oil and gas transport, continues to sit at the core of the stalled diplomatic efforts.

Prior to the outbreak of hostilities, the waterway permitted unhindered commercial transit. Following the conflict's onset, Iran shut the maritime passage, demanding continued oversight and transit tolls, an arrangement firmly rejected by Washington.

Outlining the conditions for any prospective resolution, Trump emphasised that a final agreement must incorporate the 'Immediate, Complete and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran's nuclear threat'.

At the conflict's commencement, the US administration maintained that military action was imperative to neutralise Iran's nuclear ambitions. Western powers contend Tehran is pursuing nuclear weapons capabilities, whereas Iranian authorities maintain the programme remains strictly designated for civilian purposes.

The dispute over transit rights through the vital waterway triggered the latest round of military strikes last month after Tehran restricted shipping to a channel hugging the Iranian coastline.

Elaborating on the diplomatic track on Sunday, Iranian Foreign Ministry spokesperson Esmaeil Baqaei told state television that an understanding with Oman, which shares the strategic passage, over a revised shipping lane was imminent.

'We are now going to reach an understanding on a route acceptable to both sides, neither the northern route nor the southern route, but one that respects the sovereign rights of both sides and safeguards our national interests and security,' Baqaei said.

However, the spokesperson clarified that any prospective agreement with Muscat would not automatically translate into the full reopening of the strategic waterway.

Meanwhile, maritime intelligence firm Kpler reported on Friday that vessel movement through the Strait of Hormuz has registered a sharp decline. (ANI)