President Trump says talks between Washington and Tehran are progressing, even as a large-scale U.S. military strike stays on hold rather than off the table. Iran and Oman have agreed on coordinates for a shipping route through the Strait of Hormuz, with Tehran seeking passage fees of up to 7% of cargo value. Iran's government, meanwhile, denies that active negotiations with the U.S. are underway.
Talks between the United States and Iran are progressing, President Trump said this week, even as a major U.S. military strike remains in reserve rather than cancelled. Iran and Oman have agreed on the geographic coordinates for a shipping route through the Strait of Hormuz, Iranian Foreign Ministry spokesperson Esmail Baghaei said.
Tehran seeks a cut of cargo value
A senior Iranian official told Reuters that Tehran is seeking passage fees of as much as 7% of the price of ship cargoes moving through the strait. The waterway carried roughly a fifth of the world's oil and liquefied natural gas before the conflict broke out in late February, and was open to commercial tanker traffic without fees before the war.
U.S. officials have repeatedly stressed that any deal must not let Iran control access to the strait. Still, the proposed arrangement between Iran and Oman — the two countries whose borders straddle the channel — would give Tehran oversight of ships entering the Gulf through it.
Tehran denies active talks
Deputy Foreign Minister Kazem Gharibabadi said Washington is willing to return to earlier commitments, likely referring to a June 17 memorandum of understanding that let commercial vessels pass through the strait free of charge for 60 days in exchange for the U.S. lifting its naval blockade of Iranian ships. He denied that negotiations with Washington were underway.
Trump, however, insisted this week that talks were happening whether Tehran wants to admit it or not. Trump had also accused Iran's leadership of being deceptive about the process earlier this week.
Trump keeps the strike option open
Speaking at an event in Las Vegas, Trump said officials had prepared a strike he described as the most powerful U.S. military action since World War II, but that the operation is now on hold after Iranian representatives reached out directly. He said: "I'd rather make a deal because I don't want to kill people." Trump added that Iran must never obtain a nuclear weapon, a longstanding position in his foreign policy, and offered no specifics on where the talks currently stand.
Markets have cautiously welcomed the diplomatic progress even as the geopolitical risk around the strait persists. Oil prices were last lower by 0.3% after seesawing in Wednesday's session. U.S. Dow futures had climbed 122 points, or 0.2%, ahead of Friday's jobs report.
Sources: Investing.com, CNBC, The Daily Hodl
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