The U.S. and Iran Close to Reaching Temporary Strait of Hormuz Agreement, Targeting Wednesday Announcement

BlockBeats News, August 5th, according to Axios, the United States, Iran, and Oman are close to reaching a temporary agreement to reopen the Strait of Hormuz, with the U.S. aiming to announce the arrangement as early as Wednesday.

According to two regional sources and a U.S. official, the agreement has been under negotiation for several weeks, aiming to restore the U.S.-Iran ceasefire and advance the resumption of nuclear deal negotiations. President Trump had previously considered a large-scale military strike against Iran but decided last Saturday to hold off on action to allow time for diplomatic talks.

The reported agreement under discussion would establish a 60-day temporary arrangement, extendable based on circumstances. Under the plan:

Ships entering the Persian Gulf would transit through the northern corridor of Iranian waters;

Ships exiting the Strait of Hormuz towards the Arabian Sea would pass through the southern corridor of Omani waters and coordinate with Iran;

No tolls would be levied during the temporary period;

All parties would clear mines from the central channel of the strait within 30 days;

Once cleared, the central channel would be used for two-way traffic and set the foundation for long-term arrangement negotiations.

Sources said that besides Oman, Qatar, Pakistan, and Saudi Arabia were also involved in the mediation. U.S. Special Envoy Steve Witkoff, Iranian Foreign Minister Abbas Araghchi, and Omani Foreign Minister Badr al-Busaidi have engaged in multiple rounds of communication recently.

According to reports, Iranian Foreign Minister Araghchi has tentatively agreed to the agreement over the weekend but still needs approval from Iran's top leadership and the Supreme National Security Council. A U.S. official and regional sources said that Iran completed its approval process on Tuesday.

If the agreement is eventually finalized, it could alleviate Middle East shipping risks, reduce global energy supply uncertainty, and have a significant impact on oil prices and risk asset sentiment. Previous escalations in the Strait of Hormuz had raised concerns in the market about disruptions to global oil supply.