Trump Signals Potential Strait of Hormuz Agreement This Week Following U.S.-Iran Discussions

President Donald Trump stated late Tuesday that an agreement to reopen the Strait of Hormuz could be reached as soon as Wednesday or Thursday, citing progress in talks with Iran. Trump, speaking to reporters in California, said “a lot of progress has been made” and described the discussions as “very good,” according to an Associated Press report. He separately told Fox News that the waterway “is going to be open very soon” while adding that U.S. forces would respond if the talks collapsed, stating, “If they back out again, they are going to get hit really hard.”

The remarks followed comments by U.S. Treasury Secretary Scott Bessent, who told CNBC’s “Squawk Box” that talks with Iranian officials were underway and that a deal to open the strait could occur “today or tomorrow.” U.S. Central Command posted on X that the southern route through the strait, which passes through Omani territorial waters, “remains free and open,” noting assistance to more than 1,000 vessels despite what it described as Iranian actions.

Oil prices reacted to the statements. Brent crude fell 5.3 percent on Tuesday before rising 1.3 percent to $80.39 per barrel by early Wednesday. West Texas Intermediate futures dropped 5.7 percent Tuesday and then gained 0.7 percent to $76.30.

A map prepared by AFP Infographics illustrates the shipping corridor coordinated by Oman, the corridor designated by Iran, and locations of reported attacks on vessels on July 6 and 7. The southern route referenced by Central Command lies outside the portion of the strait closest to Iran.

Iranian Foreign Minister Abbas Araghchi stated on August 2 that talks with Oman over the Strait of Hormuz were in “final stages” and “on the way to being finalized.” A senior Middle East diplomat with knowledge of the discussions told MS NOW that pressure from the United States and European countries was being applied on Oman to accept a temporary arrangement. A senior Pakistan government official, speaking on condition of anonymity, told MS NOW that a document on reopening the strait was close to completion, with talks occurring between Iran and Oman and mediated by Pakistan while the United States participated indirectly.

Earlier Tuesday, the White House and Pentagon addressed reports that U.S. forces had used most of their long-range precision missiles during the conflict. Reuters reported that the Army had depleted most of its stockpile of Army Tactical Missile Systems and Precision Strike Missiles. CNN reported that nearly 80 percent of interceptors for the THAAD missile defense system had been used. Trump responded that the United States possesses “far more munitions than anyone in the world, and far more than we need,” and that defense companies were producing at record levels while expanding facilities. White House deputy press secretary Anna Kelly stated that U.S. military stockpiles were sufficient for all strategic goals and beyond.

The five-month conflict has involved repeated strikes and threats regarding the strait, a key transit route for oil. Reports of the talks contributed to market movements on Tuesday, with expectations that an agreement could reduce disruptions to shipping.