Iran and Oman make progress on a deal to reopen the strait of Hormuz, officials say
Iran and Oman have made progress toward a deal to reopen the strait of Hormuz, a potential breakthrough that could help end the war in the Middle East, regional officials have said.
Under the emerging agreement, ships would enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman, with service fees charged for providing security and preserving the maritime environment, two regional officials told the Associated Press.
They said negotiations are still underway and that the final agreement could take a different form. They said any deal would be linked to lifting the US blockade on Iran’s ports.
The officials spoke on condition of anonymity to discuss the sensitive negotiations unfolding behind closed doors.
Key events
Iraq exported over 30 million barrels of crude oil in one month through the strategic strait of Hormuz, data from the maritime tracking firm Kpler showed on Tuesday.
Before the Middle East war, which choked shipments through the vital waterway, Iraq produced around four million barrels per day, and exported an average of 105 million barrels per month, mostly from its Basra oil terminal via Hormuz.
Around 30 million barrels of Iraqi crude oil passed through Hormuz between 4 July and 4 August, according to vessels detected by Kpler.
A mass funeral was held in Gaza City on Tuesday for 112 Palestinians whose bodies were recovered nearly three years after Israeli warplanes flattened a residential block.
Hundreds of people gathered as the bodies wrapped in Palestinian flags were laid in rows near the destroyed buildings before being carried on stretchers through a narrow street for burial in a nearby cemetery.
US sees progress in strait talks, hopes for deal very shortly, Rubio says
US secretary of state Marco Rubio said there has been progress made in discussions with Iran and Oman on getting more ships through the strait of Hormuz but no final agreement has been reached.
“There’s been progress made in those talks, but not finality yet. We’re hoping that will happen very shortly,” Rubio told reporters at the State Department.
Here are some pictures on the newswires from Gaza, where a funeral was held for 112 Palestinians who were killed in an Israeli airstrike in November 2023. Gaza’s Civil Defense agency said it recovered the remains during two weeks of searching through rubble.
Jillian Ambrose
Donald Trump has criticised oil companies for “making too much money” from the global energy market disruption caused by his war on Iran.
Brent crude had been trading at about $70 (£52) a barrel before the first US-Israeli strikes at the end of February, but by the end of April it had soared as high as $126 and is now trading at about $85 a barrel.
The US president took aim at the windfall profits revealed last week by ExxonMobil and Chevron, and said the companies would “give some of that back to the public”.
“They’re making too much money based on a shortage,” he told reporters at the White House on Monday evening. “I don’t like it.”
Trump was speaking just hours before BP reported its profits had doubled in the last quarter, to $5.7bn.
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Lebanon and Israel hold fresh talks in Rome
Meanwhile, Lebanese and Israeli negotiators have resumed direct talks in Rome, marking the seventh such meeting since the war between Israel and Hezbollah began in March.
In televised remarks, Hezbollah’s leader, Naim Qassem, criticised the talks, saying they would bring “shame, humiliation and disappointment” to Lebanon and “successive concessions”.
The Lebanese prime minister, Nawaf Salam, hit back, writing on X: “The greatest help to Israel was provided by those who unilaterally drew Lebanon into the adventures of futile wars… and granted it pretexts to attack our country.”
During talks in June, Israel and Lebanon agreed to a framework deal that involves the disarmament of Hezbollah, the withdrawal of Israeli troops from southern Lebanon and and the deployment of the Lebanese army to the region. Hezbollah has rejected the talks and refused to surrender its weapons.
While the fighting has largely subsided, sporadic Israeli strikes have continued in southern Lebanon since June, with the Israeli military also demolishing villages and forcing thousands of people to flee.
Bessent: I expect the energy prices to settle back down
In further comments to CNBC, Bessent repeated the Trump administration’s claims that Iran’s military capabilities have been “wiped out”, despite Tehran continuing to hurl missiles at Gulf states.
Commenting on the Strait of Hormuz, he said that while the situation at the vital waterway was “still a little dicey”, “quite a few ships” were coming out “even now”.
He added: “I expect the energy prices to settle back down.”
There were reports this morning that a ship had been hit by an “unknown projectile” in the strait of Hormuz, near the Omani coast. One crew member is reportedly missing (see post at 13:28).
But Brent crude, the global benchmark for oil prices which had been rising earlier today, is now down 3.4% to $80.88 a barrel.
For the latest on the war’s impact on global markets, oil prices and the wider economy, follow our business live blog:
Bessent: US could reach deal with Iran to reopen strait of Hormuz by tomorrow
The US treasury secretary, Scott Bessent, said Washington could reach a deal with Iran by tomorrow to reopen the strait of Hormuz.
“We are in talks with the Iranians, and I think there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalised position in this conflict,” Bessent said in an interview with CNBC.
“It would be freedom of movement,” he added when asked if Iran could charge shipping tolls.
There was no immediate comment from Iran, which had earlier denied that negotiations with the US were taking place.
Qatar says diplomatic efforts ‘ongoing’ as Iran insists it does not seek to expand war
Hello and welcome to our live coverage of the Middle East.
Qatar’s foreign ministry said efforts to reach a diplomatic solution between the US and Iran were “ongoing”, despite conflicting statements from Tehran and Washington over whether negotiations had resumed.
“We can confirm that the efforts are still ongoing with all parties,” the ministry spokesperson, Majed al-Ansari, told reporters at a briefing today.
He said negotiations were focused on “a short-term resolution that would help us reignite the talks and go back to the mediation efforts in its totality”.
He added: “Our focus right now is on lowering escalation, reopening the strait [of Hormuz], and reopening the door for diplomacy between the parties.”
US president Donald Trump said yesterday that talks with Iran had resumed, telling reporters in the Oval Office: “This is the last chance for them to sign a good document.”
The Iranian foreign ministry spokesperson, Esmail Baghaei, denied the Trump’s claims, saying: “We are not currently negotiating with the United States.” He said the only talks under way were discussions with Oman on reopening shipping traffic in the strait of Hormuz.
The vital waterway, which carried a fifth of the world’s oil and gas before the war, has been effectively shut since the conflict began in late February and ships attempting to cross the strait have come under attack.
In one such incident, a cargo ship near the coast of Oman in the strait of Hormuz was “hit by an unknown projectile” overnight, according to the UK Maritime Trade Operations (UKMTO) agency. The ship was 20 nautical miles (23 miles) north-east of the Omani port city of Al Khasab when it reported being hit, UKMTO said. The agency did not provide further details.
Reuters later reported a Liberia-flagged dry bulk ship, Minoan Pioneer, had been hit by an unknown projectile in the strait of Hormuz while sailing close to Oman’s coast. It was unclear whether this incident was related to the earlier UKMTO report.
The British maritime risk management group Vanguard said a projectile reportedly struck the vessel’s engine room and a fire broke out in the accommodation area, Reuters reported.
“The crew are fighting the fire and require assistance, while the third engineer is reported missing,” Vanguard said.
In Gaza, a mass funeral is being held for 112 Palestinians whose bodies were recovered after nearly three years under the rubble in Gaza City. Associated Press reported they were among more than 300 people killed on 22 November 2023 when Israeli warplanes flattened an apartment block in the city’s Sabra neighbourhood. Their bodies were recovered over the weekend after emergency workers dug through the rubble for 136 hours, according to the Palestinian Civil Defence.
Despite agreeing to a ceasefire with Hamas in October, Israel has continued to bomb Gaza on a near daily basis since then, with July being the deadliest month of Israeli strikes so far this year. Gaza’s health ministry said 152 people were killed last month, while heavy bombing on Sunday killed a further 18 Palestinians.
Trump’s Board of Peace, established earlier this year as part of the US-brokered ceasefire, appeared to change its conditions for Israel to withdraw from Gaza after its top officials held a meeting yesterday with the Israeli prime minister, Benjamin Netanyahu.
“We note that the withdrawal of the IDF [Israel Defense Force’] beyond the yellow line will take place only once decommissioning is complete, as Hamas committed to the mediators. This applies to light weapons, heavy weapons and the tunnels alike,” the Board of Peace said.
In its roadmap for peace published last week, the board proposed that the “complete Israeli withdrawal from the Gaza Strip” be tied to the disarmament process, indicating that the two moves would happen simultaneously. But it did not say how this would happen, with both sides insisting the other make the first move.
