The US, Iran, and Oman are reportedly close to reaching an interim agreement to reopen the vital Strait of Hormuz, as per Axios news outlet’s information from two regional sources and a US official.

The report suggests that the US is aiming to make an announcement about this on Wednesday.

The waterway has been a source of contention in the US-Iran conflict. Following joint strikes by the US and Israel on key Iranian sites on February 28, Iran retaliated by attacking various sites across the Middle East and blocking the strait.

Before the conflict, approximately 20% of global oil trade passed through the Strait of Hormuz. However, its closure has disrupted the oil flow from the Middle East, causing market instability and driving up fuel prices worldwide.

A Memorandum of Understanding (MoU) was signed by the US and Iran on June 17, with the goal of ending the war within 60 days.

Efforts were being made to establish a lasting peace agreement between Washington and Tehran, restore international shipping through the Strait of Hormuz, and resolve the ongoing dispute over Iran’s nuclear program.

Unfortunately, the agreement was short-lived, and hostilities resumed less than a month after the MoU was signed.

Negotiations for the reported interim agreement, as mentioned by Axios, have been ongoing for several weeks. The aim is to reinstate the ceasefire between the US and Iran and reopen discussions regarding a nuclear deal.

According to Axios, the potential deal would address some of Iran’s demands for increased control over the traffic in the Strait of Hormuz, a control it lacked before the conflict.

The discussed deal would create a 60-day temporary arrangement between Oman and Iran in the strait, with the possibility of extension, based on insider information.

Reportedly, the deal would involve the following key points:

US President Donald Trump opted against pursuing a large-scale bombing campaign to allow more time for diplomatic efforts. However, if a deal is not reached promptly, Trump may authorize significant strikes.

In a statement to Fox News, President Trump remarked, “The Strait is going to be open very soon – or they’re gonna hit very hard, and then the Strait is going to be open.”