US and Qatari Officials Report Progress on Talks to Reopen Strait of Hormuz; Iran Denies Direct Negotiations With Washington
The Facts
- Qatari foreign ministry spokesman Majed al-Ansari said Tuesday that mediation efforts were at an advanced stage and that draft language for a possible agreement had been circulated among the parties.
- US Treasury Secretary Scott Bessent told CNBC that Washington was in talks with Iran and that there was a chance of a deal "today or tomorrow" to reopen the strait, adding that the arrangement would provide freedom of movement rather than tolls on shipping.
- Oil prices fell on the news, with Brent crude dropping to its lowest level in about three weeks; equity markets also rose, with the Dow closing at a record high on Monday.
- The Strait of Hormuz — through which roughly one-fifth of global oil and gas shipments passed before the conflict — has been effectively closed since the US and Israel began their war with Iran on February 28, and remained shut as of Tuesday.
- Iran's foreign ministry denied Trump's assertion that negotiations with the United States were under way, saying its talks are with Oman and are focused on a new maritime arrangement that protects Iranian sovereignty.
- Under the emerging Iran-Oman arrangement described by regional officials, ships would enter the Persian Gulf via a route close to Iran's coast and exit via a route near Oman's, with service fees charged and revenue shared; a US official disputed that description, saying the routes would not require Iranian approval or the payment of tolls.
- A cargo vessel was reported struck near the strait; Britain's UKMTO reported the incident and a maritime risk firm said the engine room of the Liberia-flagged Minoan Pioneer was hit and one sailor was missing.
- Trump said an "all-day negotiation" was held with Iran on Tuesday and that a deal could come within days, while warning that Iran would be "hit very hard" if it backed out; he had said days earlier that he called off a planned large-scale attack after appeals from regional governments.
- A previous preliminary US-Iran agreement signed in mid-June to end the conflict and reopen the strait collapsed within weeks amid a dispute over control of the waterway, making the current talks an attempt to revive a broader cease-fire.
Context
Why does the Strait of Hormuz matter economically?
Before the conflict, roughly one-fifth of global oil and natural gas shipments passed through the waterway BBC Indian Express. Its closure has disrupted supply and contributed to a volatile oil market and higher fuel prices for drivers BBC. Bessent said that once the strait reopens, "hundreds if not a thousand ships" waiting inside would be able to leave, carrying not only energy but fertilizer, refined products and industrial gases, which he said could produce a "big relief trade" Forbes.
What is actually in dispute between Washington and Tehran?
Regional officials say the emerging plan would route inbound ships along an Iranian-controlled corridor and outbound ships near Oman's coast, with "service fees" collected for security and environmental protection and revenue split between Iran and Oman Times of Israel News18. A US official called the Iranian description "not accurate," saying the routes would be temporary and would not require Iranian approval or tolls Times of Israel, and Bessent said any deal would mean "freedom of movement" Hindustan Times. Regional officials also said any agreement would be tied to lifting the US blockade of Iranian ports News18.
What would come next if a deal is reached?
Axios, cited by multiple outlets, reported that the arrangement on the table is a 60-day safe-passage deal for the strait that could be extended, with the US aiming to announce it by Wednesday, and that it is intended to restore a US-Iran cease-fire and restart nuclear talks Times of Israel Investing.com. Trump has said reopening the strait is the immediate focus and described denuclearization as a "second phase" News18 News18. Iranian media reported Tehran saying an agreement would be delayed as long as US threats continue Investing.com MoneyControl.
Where Left and Right agree, and where they split
- Where Left and Right agree
- A deal is being talked about but not signed: the strait is still shut, and the arrangement's actual terms — free transit or fees near Iran's coast — remain contested.
- Where Left and Right split
- Optimism being priced in while crews on the water carry the real risk, or a reopening that must not be purchased from Tehran.
How left and right read it
Qatar's spokesman said draft language was circulating; Bessent said a deal could land today or tomorrow. Markets moved immediately — Brent to a three-week low, the Dow at a record — while the strait stayed shut, a cargo ship's engine room was hit near it, and one sailor was missing. Tehran says its talks are with Oman, not Washington. Optimism priced into equities is not a settlement, and the people carrying the risk are on the water.
“His remarks echo similarly upbeat comments on Monday from Donald Trump, who claimed that a breakthrough was imminent, though Tehran quickly denied it was involved in any direct talks with the US.” — The Guardian
Roughly one-fifth of global oil and gas moved through Hormuz before the waterway went effectively shut on February 28. The arrangement regional officials describe would send ships along Iran's coast, charge service fees and share the revenue — a toll booth on world commerce, dressed as a maritime arrangement. Bessent drew the line correctly. Reopening must mean transit no one has to purchase.
“Any deal would restore "freedom of movement" through the key shipping lane, added Bessent, making clear Iran would not be allowed to slap tolls or fees on passing ships.” — New York Post
The receipts — 100 sources
Wire services (8)
Independent coverage (92)
The news, read by both sides.
The day’s biggest stories in one short brief, built to show both sides and the competing values behind the headlines. Free in your inbox.