Efforts to restore a ceasefire in the ongoing US-Iran conflict and reopen the Strait of Hormuz are reportedly making progress, according to officials from the United States, Qatar, and Pakistan, although Iran denies that direct negotiations with the US have begun. The developments have led to a decline in global oil prices, reflecting cautious optimism over a potential agreement to ease tensions and resume shipping through the strategically vital waterway.
The Strait of Hormuz, which serves as a crucial transit route for roughly one-fifth of the world’s oil and liquified natural gas, has remained effectively closed due to escalating naval incidents. A vessel was reportedly struck by an unidentified projectile near Oman’s coast close to the strait, according to Britain’s maritime security agency, UKMTO, underscoring the volatile security situation despite talks underway.
US Treasury Secretary Scott Bessent expressed optimism about the prospects for a deal, suggesting it could be concluded within days. He described ongoing negotiations with Iran as “progressive” and a step toward normalizing the conflict. Similarly, US Secretary of State Marco Rubio acknowledged progress but noted that no final agreement had yet been reached. Meanwhile, US President Donald Trump stated that talks had commenced and warned that Iran faced a "last chance" to secure a deal.
However, Iranian officials have rejected claims that direct negotiations with the United States are occurring. Iranian Foreign Ministry representatives emphasized that their only discussions were with Oman regarding the strait and that no major meetings with the US were planned. This stance reflects internal divisions within Tehran, where moderate elements appear open to compromise, while hardliners remain opposed, wary of US intentions and skeptical about promised financial incentives.
Diplomatic mediators from Qatar, Pakistan, and Oman have played an active role in facilitating dialogue. Qatar’s foreign ministry spokesperson, Majed al-Ansari, described the talks as reaching “very progressive stages,” with mediators closely coordinating to bridge differences between Washington and Tehran. Pakistani officials similarly reported ongoing communication with both sides aimed at encouraging them to engage in further talks.
A key focus of the discussions has been a proposed temporary transit arrangement to allow commercial vessels safe passage through the strait. The plan involves ships entering near Iran-controlled waters and exiting via a joint route controlled with Oman. However, Oman has expressed reservations, fearing the arrangement could grant Iran a lasting influence over sea lanes in its territorial waters. Regional diplomats note that pressure from Saudi Arabia and Western countries is mounting on Oman to accept the proposal amid concerns that failure to reach an agreement could escalate into broader conflict.
The memorandum of understanding signed in June collapsed last month after Iranian forces attacked vessels that attempted passage without prior approval. Negotiators hope a new deal will address contentious issues such as Iran’s demand to impose fees on transiting ships and initiate a 60-day period during which Iran’s nuclear program would also be discussed.
While the situation remains fluid and complex, the diplomatic outreach marks a tentative step toward de-escalation in one of the world’s most sensitive maritime chokepoints. Observers caution that significant challenges remain before a durable resolution can be achieved.