US and Iran Close to Reopening Strait of Hormuz, Trump Says

US President Donald Trump said Wednesday that the Strait of Hormuz could reopen “very soon”, claiming the United States and Iran had held an “all-day negotiation” and warning Tehran it would be “hit very hard” if it backed away from a potential agreement. “If they back out again, they are going to get hit really hard. They know that. They understand that. I have no choice,” Trump said. Speaking in an interview with Fox News, he said that there was an “all-day negotiation” with Tehran on Tuesday (Aug 4), and that both countries were having “very good” discussions, adding that his first choice was pushing for a diplomatic agreement. “We hit them very, very hard. But the hard hit is yet to come, and hopefully we won’t have to use it,” he said. “I hope we won’t – we’re having very good discussions. They don’t like to admit that.” The US president further said that Iran was keen on exploring ways to end the conflict. “The only thing that matters is action. And they want to make a deal. We’ll see what happens,” POTUS said. “I have plenty of time,” he added. He then said that he believed a deal could happen “tomorrow or the next day.” Axios, citing two regional sources and a US official, reported that the United States and Iran were close to reaching an interim agreement to reopen the strategic strait with Oman’s backing. The report stated that Washington was aiming for an announcement as early as Wednesday. Any reopening of the Strait of Hormuz would be closely watched by India, which imports a significant share of its crude oil from Gulf producers through the strategic waterway. The Iranian state media, however, citing an informed source, said that an agreement with Oman on the strait will be delayed “as long as the United ‌States continues to threaten Iran.” Meanwhile, Qatar said that the mediators were making progress in their efforts to end the conflict, even after Tehran denied that talks were underway. The office of Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, on Tuesday, said that he received a phone call from Trump and they discussed ways to de-escalate tensions between Washington and Tehran and bridge the gap between both countries. Around 20% of global oil and LNG shipments pass through the Strait, making it one of the world’s most important energy chokepoints. Critical for India’s energy security: A significant share of India’s crude oil imports from Gulf producers travels through this route. Global shipping lifeline: The waterway connects the Persian Gulf with the Arabian Sea, carrying oil, gas and commercial cargo. Fuel prices: Any disruption can drive up global crude prices, with the potential to increase petrol and diesel costs. Shipping and insurance costs: Conflict in the region can raise freight rates and war-risk insurance premiums, disrupting global trade and supply chains.