New Delhi, Aug 5: Efforts to resolve the US-Iran standoff have entered a “very progressive stage”, with draft proposals for a possible agreement now being circulated, according to Qatar’s Foreign Ministry, as hopes grow for the reopening of the strategically vital Strait of Hormuz.
Qatar said there are still no direct negotiations between Washington and Tehran, but diplomatic efforts are advancing through intermediaries.
Qatar’s Emir also held a telephone conversation with US President Donald Trump to discuss ways of bridging differences between the United States and Iran.
Adding to the optimism, US President Donald Trump said the Strait of Hormuz would reopen “very soon” and warned that Iran would be “hit very hard” if it failed to cooperate.
Speaking to Fox News during a visit to California, Trump said the two sides were engaged in “very good discussions” and insisted that Iran was keen to reach an agreement to end months of tensions.
US Secretary of State Marco Rubio said negotiations had made progress, although “not finality”, expressing hope that commercial shipping through the Strait could resume shortly.
Treasury Secretary Scott Bessent also voiced optimism, saying an agreement to reopen the waterway could be reached “today or tomorrow”, describing it as a move towards restoring “freedom of movement” through the strategic passage.
Iran, however, has denied holding direct negotiations with the United States.
Tehran said it was instead engaged in discussions with Oman, which is acting as a mediator.
An Iranian Foreign Ministry spokesperson described the talks with Oman on a new mechanism for vessel movement through the Strait as “positive”.
Qatar, another key mediator, said diplomatic efforts were continuing, although no direct US-Iran talks were currently planned.
Iran is also seeking temporary arrangements through talks with Oman that would allow Tehran to manage a shipping route through the Strait for up to three months, according to an official.
The US military, meanwhile, said the southern route through the Strait of Hormuz remains open for international commercial shipping.
US Central Command (CENTCOM) stated that the “southern route through the Strait of Hormuz remains free and open for all commercial vessels seeking to transit the international waterway.”
Despite the diplomatic optimism, security concerns remain high.
CNN reported that the US military has depleted nearly 80 percent of the interceptor missiles used in a key air defence system, leaving Pentagon stockpiles “dangerously low”.
Separately, a cargo vessel reportedly lost power in the Strait of Hormuz after earlier being struck by an unidentified projectile.
The improving diplomatic outlook weighed on global oil markets.
Brent crude prices fell nearly 5 percent on Tuesday to below $80 a barrel, their lowest level since July 13, before extending losses by another 0.7 percent in Asian trading on Wednesday. US West Texas Intermediate crude also dropped more than 5 percent to around USD 76 a barrel.
The BBC reported that hopes that shipping through the Strait could resume soon eased fears of supply disruptions in one of the world’s most important oil transit routes. However, it cautioned that previous attempts to de-escalate tensions between Washington and Tehran had collapsed, keeping global energy markets volatile and contributing to higher fuel prices for consumers.
