Strait talk: U.S. and regional partners see progress toward reopening Hormuz chokepoint

By Vaughn Cockayne and Tom Howell Jr. - U.S. and Middle East officials said Tuesday they were zeroing in on a deal with Iran to reopen the Strait of Hormuz, a potential return to normalcy that cheered oil investors and sparked records on Wall Street. Oil prices dropped below $80 per barrel, down from over $100 at the height of the U.S.-Iran war, after Treasury Secretary Scott Bessent said he expected an agreement by midweek. Mr. Bessent said returning the waterway to normal would benefit oil markets and a host of other sectors, including fertilizer and the chemical industry. Secretary of State Marco Rubio pointed to progress in separate remarks, while Iranian officials said they made strides in consultations with Oman, the sultanate on the other side of the waterway. The emerging agreement would call for ships to enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman, regional officials told The Associated Press. However, the deal would be contingent on the U.S. lifting its blockade of Iran, a potential sticking point. The American side considers the June memorandum to be a dead document, however, and says it is time for Iran to allow free movement in the strait, as international law has long required, and agree to give up hopes for a nuclear weapon. While the U.S. speaks to Iran through mediators, Tehran officials engaged with Oman about "the future administration and maritime services in the Strait of Hormuz." Iranian foreign ministry spokesperson Esmaeil Baghaei told state-run media that the discussions are both political and technical and are focused on determining "safe inbound and outbound routes for vessels." Mr. Bessent strongly suggested that Iran would not be prohibited from charging a toll, a key point for global officials who say the strait must remain a free and open waterway. "I think it would be freedom of movement," Mr. Bessent said on CNBC. "Even though things are still a little dicey there over the past few days, we saw quite a few ships coming out even now. I'd expect the energy prices to settle back down." The situation is a bit of a jumble, despite optimistic rhetoric on the American side. Iranian officials have insisted that they are not negotiating with the U.S., contrary to statements made by President Trump, who said earlier this week that both countries were approaching a deal to open the strait and end the war. Mr. Trump on Monday said he is giving diplomacy one last chance before he launches crippling strikes on Iran. "I want to give them every last chance before decapitation," Mr. Trump said in the Oval Office. "We'll see what happens." "To do an attack that big on a country? I'd rather not do it," Mr. Trump said. "Hopefully, they'll come to their senses." The foreign ministry of Qatar on Tuesday said draft proposals are being exchanged between Iranian and U.S. officials, with mediators from Qatar, Oman, and Pakistan facilitating the coordination. Ministry spokesman Majed al-Ansari said the eventual goal is to "go back to the normal situation" in the region, particularly in the Strait of Hormuz. Mr. al-Ansari declined to provide a timeline when pressed on when a deal could be announced, but insisted it would be "as soon as possible."