CAIRO, Egypt: Iran said late on August 5 that it has reached the final phase of negotiations with Oman over the Strait of Hormuz, signaling a possible breakthrough in efforts to reopen the key global shipping route. U.S. President Donald Trump also indicated that an announcement on a deal could come within the week.

The proposed agreement could allow traffic to resume through the strategic waterway, potentially easing strain on global markets and creating momentum toward ending the ongoing conflict. However, progress appears tied to a major condition: Iran is seeking the lifting of a U.S. blockade on its ports as part of any final arrangement.

Washington has previously rejected proposals that would formalize Iranian control over the strait, viewing such a move as a significant strategic loss and a departure from established international norms. Tehran, on the other hand, has maintained that it will not return to the previous arrangement in which the strait functioned as an open international passage without its oversight.

The conflict began on February 28, when the United States, alongside Israel, launched military action citing objectives that included removing Iran's leadership and halting its nuclear program. Those goals have not been realized, and the confrontation has since shifted toward control of the strait, with Iran asserting authority over the passage and carrying out attacks that have brought shipping activity close to a standstill.

The disruption has had wide-reaching economic effects. The strait, once responsible for carrying roughly one-fifth of the world's traded oil and natural gas, has seen traffic severely reduced, pushing up fuel costs and affecting prices of everyday goods globally. At the same time, Trump is facing increasing political pressure to bring the conflict to an end ahead of upcoming U.S. congressional elections.

Iran's Foreign Ministry spokesperson Esmail Baghaei confirmed that negotiations with Oman are nearly complete and said a joint announcement could follow if no outside interference disrupts the process. "If certain parties do not obstruct this process," he said, a statement widely seen as directed at the United States.

Draft Agreement Finalized

According to two regional officials briefed on the discussions, Iranian and Omani negotiators have already finalized the draft agreement to reopen the strait. The deal now awaits approval from Iran's Supreme Leader Ayatollah Mojtaba Khamenei, who is believed to have been injured during the early stages of the conflict and has not appeared publicly since.

The officials described the arrangement as a temporary measure aimed at easing tensions around the strait. They said it builds on a previous understanding reached between the United States and Iran in June, which had sought to end hostilities and restore shipping but ultimately failed to hold.

Speaking on condition of anonymity due to the sensitivity of the talks, the officials added that the agreement could also help restart broader negotiations between Washington and Tehran over Iran's nuclear program.

Earlier details shared by the same sources suggested that the plan would involve ships entering the Persian Gulf through a route overseen by Iran and exiting via a passage managed by Oman. Fees would be charged for providing security and maintaining environmental standards along the shipping lanes.

The United States has made clear its opposition to any system that would allow Iran to impose such charges.

Vice President JD Vance acknowledged that efforts to resolve the conflict have been complex, describing the process as "messy" and indicating that progress would take time. He also noted that negotiations with Iran often involve setbacks before any forward movement can be made.

Oil markets reacted cautiously to the developments. Prices initially fell but later edged higher, with Brent crude, the global benchmark, hovering around US$80 per barrel, still below the peaks reached earlier in the conflict.

In recent days, Trump has sent mixed signals, alternating between threats of intensified military action and expressions of support for diplomatic solutions. However, he said there could be a deal soon.