The US and Iran are nearing a temporary agreement on the Strait of Hormuz, with plans to announce it on Wednesday.

According to Axios, the U.S., Iran, and Oman are nearing a provisional agreement to reopen the Strait of Hormuz, with U.S. officials aiming to announce the arrangement as early as Wednesday. Two regional sources and a U.S. official disclosed that the deal, negotiated over weeks, aims to restore a U.S.-Iran ceasefire and advance the resumption of nuclear deal talks. Trump had previously considered launching a large-scale military strike on Iran but decided to pause the operation last Saturday to make room for diplomatic negotiations. The proposed agreement would establish a 60-day provisional arrangement that could be extended based on conditions. Under the plan: Vessels entering the Persian Gulf will sail through the northern lane of Iran’s territorial waters; Vessels exiting the Strait of Hormuz bound for the Arabian Sea will use the southern lane of Oman’s territorial waters in coordination with Iran; No transit fees will be charged during the provisional period; All parties will clear mines from the strait’s central lane within 30 days; once completed, the central lane will open for two-way traffic, laying the groundwork for long-term arrangement negotiations. Sources said Qatar, Pakistan, and Saudi Arabia are also involved in mediation besides Oman. U.S. Special Envoy Steve Witkoff, Iranian Foreign Minister Abbas Araghchi, and Omani Foreign Minister Badr al-Busaidi have held multiple rounds of communications recently. Araghchi reportedly agreed to the deal in principle over the weekend, but it still needs approval from Iran’s top leadership and Supreme National Security Council. A U.S. official and a regional source stated Iran completed the approval process on Tuesday. If finalized, the deal could ease Middle East shipping risks, reduce global energy supply uncertainty, and significantly impact oil prices and risk asset sentiment. Earlier, escalating tensions in the Strait of Hormuz had sparked market concerns over disruptions to global oil supplies.