WASHINGTON, D.C. / RankWire.AI / – President Donald Trump announced that the United States would cancel a planned strike on Iran if negotiators could reach an agreement promptly. He emphasized that the deal should include reopening the Strait of Hormuz and addressing Iran’s nuclear program. Additionally, he noted that Israel supported the diplomatic efforts. By Monday, the White House had not disclosed an official signed deal, and specific terms or a formal timeline remained unavailable.
Iran did not confirm Trump’s statement that Tehran had requested Washington to stop the planned military action. Iranian Foreign Minister Abbas Araqchi explained that negotiations with Oman concerning navigation routes were in their final phases. Esmaeil Baghaei, a spokesperson for Iran’s Foreign Ministry, indicated these discussions involved a new route through the waterway but remained separate from any decision to fully reopen Hormuz. Iran also kept its armed forces on alert.
This announcement followed a conversation between Trump and Saudi Crown Prince Mohammed bin Salman. During the call, Saudi Arabia’s crown prince emphasized the importance of dialogue and reducing regional tensions. Trump previously identified Jared Kushner, special envoy Steve Witkoff, and Secretary of State Marco Rubio as participants in the negotiations. Washington did not specify a final schedule for the talks. Meanwhile, Saudi Arabia has continued to support direct diplomatic engagement between the United States and Iran.
Negotiations focus on nuclear issues and maritime disputes
The United States and Israel initiated military actions against Iran on February 28, targeting Iranian missile capabilities and nuclear sites, according to official statements. A temporary ceasefire in June halted hostilities for a short period. However, the arrangement later unraveled, and military operations resumed. Iran denies seeking nuclear weapons, asserting instead its right to civilian nuclear technology.
The Strait of Hormuz continues to be a central element in the negotiations because it is vital for global energy shipments. Prior to the conflict, roughly 20% of worldwide oil and liquefied natural gas exports traveled through this waterway. Iranian restrictions have led to reduced tanker traffic and higher transportation costs. Recent security incidents near Oman have been reported by maritime authorities, including a projectile damaging a tanker’s engine room; no casualties were reported during the incidents over the weekend.
Oil prices decline following the announcement
Oil prices sharply declined on Monday after Trump stated that the planned U.S. attack would not move forward under the proposed agreement. Brent crude fell by $4.49, or 5.1%, reaching $83.44 per barrel in early trading. U.S. West Texas Intermediate decreased by $4.90, or 5.8%, to $79.77. Both benchmarks had increased by over 20% throughout July. Additionally, OPEC+ approved an output increase of approximately 188,000 barrels per day for September.
No definitive nuclear, maritime, or security agreement was finalized by early Monday. Trump linked the cancellation of the military strike to the swift conclusion of negotiations. Iran maintained its discussions with Oman while remaining militarily prepared. Israel stated that it continues to coordinate closely with the United States on security matters. The negotiations are centered on navigation through the Strait of Hormuz, Iran’s nuclear program, and ending the five-month-long conflict.