3 weeks ago
Trump: Iran Hormuz deal could come within days
The United States and Iran are fighting a war that started on February 28.
During the war, Iran blocked the Strait of Hormuz, a very important ocean waterway.
Many ships carrying oil travel through that waterway, so countries around the world felt the effects.
President Donald Trump says the two countries are getting closer to an agreement to reopen it.
He says the announcement could come very soon, maybe tomorrow or the next day.
Iran is working with the country of Oman to write the deal, and Iran's top leader still has to approve it.
One big problem is who gets to control the ships that pass through the waterway.
Iran wants to check the ships and charge them money, but the United States says ships should pass for free.
An earlier deal fell apart because the two sides couldn't agree on that.
Oil prices went down a little because people are hopeful the deal will happen.
US President Donald Trump said a deal with Iran to reopen the Strait of Hormuz could be announced 'tomorrow or the next day,' citing 'a lot of progress.'
Iran's foreign ministry said Tehran and Oman were in the 'final stage' of drafting an agreement, with a draft awaiting approval from Supreme Leader Ayatollah Mojtaba Khamenei.
The draft envisages commercial ships passing through Iranian territorial waters, with Iran seeking transit fees of 5-7% of cargo value while the US insists ships pay no fees.
A previous US-Iran memorandum collapsed over Article 5, which Iran read as recognition of its sovereignty to manage and potentially fee ships, while the US and Gulf allies insisted on an open, toll-free strait.
Oil prices eased on hopes of a deal, with Brent crude slipping 1.2% to $78.43 per barrel early Wednesday before recovering slightly amid regional security concerns.
- Who
- US President Donald Trump, Iran, and Oman, whose negotiators are drafting the agreement; the war pits the US and Israel against Iran.
- What
- A possible US-Iran deal, drafted with Oman, to reopen the Strait of Hormuz with commercial ships passing through Iranian-controlled waters.
- Where
- The Strait of Hormuz and the Persian Gulf; the draft agreement was negotiated with Oman.
- When
- A deal could be announced 'tomorrow or the next day,' more than five months after the war began on February 28.
- Why
- To end Iran's blockade of the strait, which has disrupted global energy supplies since the war began.
Supporters of the diplomatic deal
Critics of the proposed deal
Control of the Strait of Hormuz
Supporters of the diplomatic deal
Iran says the concession on some form of control has already been made and insists commercial ships will pass through Iranian territorial waters, refusing to return the strait to its pre-war unrestricted status.
Critics of the proposed deal
The US and Gulf allies reject any Iranian authority over international shipping, insisting the strait remains an open international waterway protected by international law.
Transit fees
Supporters of the diplomatic deal
Iran wants transit fees of 5-7% of cargo value, and Gulf negotiators are open to voluntary security-related payments, with Oman proposing about 3%.
Critics of the proposed deal
Washington insists ships should pay no fees at all and opposes any mandatory charges on international shipping.
Assessing the proposed agreement
Supporters of the diplomatic deal
Trump says a lot of progress has been made and the deal would reopen the strait, easing oil markets and avoiding further destruction in the conflict.
Critics of the proposed deal
Giving Iran control over inbound traffic would be one of the biggest US concessions in more than five months of war, shifting the regional power balance in Tehran's favour despite US officials insisting they would never agree to it.
Key facts
- US President
- Donald Trump
- War start
- February 28, launched by the US and Israel
- US core objectives
- Unconditional reopening of the Strait of Hormuz and de-nuclearization of Iran
- Oil through strait
- About one-fifth of the world's traded oil and natural gas (around 20% of petroleum and crude oil)
- Brent crude price
- $78.43 per barrel early Wednesday, down 1.2%, later around USD 80
- Draft status
- Completed draft awaiting final approval from Supreme Leader Ayatollah Mojtaba Khamenei
- Proposed transit fees
- Iran wants 5-7% of cargo value; Oman proposed about 3%; US insists on no fees
- Previous deal
- June memorandum collapsed over differing interpretations of Article 5
Quotes
Donald Trump
President of the United States
“We certainly encourage the parties to move forward with any effort to have a negotiated solution to the issue.”
telegraphindia.com
“It could happen. Tomorrow or the next day, A lot of progress has been made.”
livemint.com
telegraphindia.com
Kazem Gharibabadi
Iranian deputy foreign minister
“Designed in such a way that commercial ships will pass through Iranian territorial waters, both on the inbound and outbound legs of their journey.”
telegraphindia.com
Sources
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