WASHINGTON, D.C. / RankWire.AI / – President Donald Trump announced that the United States would halt a planned strike on Iran if the negotiators could finalize an agreement promptly. Trump emphasized that the deal should include reopening the Strait of Hormuz and addressing Iran’s nuclear program, adding that Israel supported the diplomatic initiative. As of Monday, the White House had not disclosed a signed agreement, and detailed terms along with a formal timetable remained unavailable.
Iran denied Trump’s claim that Tehran had requested Washington to stop the impending attack. Iranian Foreign Minister Abbas Araqchi stated that negotiations with Oman over navigation routes had reached their final stages. Esmaeil Baghaei, a spokesperson for Iran’s Foreign Ministry, indicated that these discussions involved a new route through the waterway, but clarified that they were separate from any decision to fully reopen Hormuz. Meanwhile, Iran has kept its armed forces on alert.
This announcement came after a phone call between Trump and Saudi Crown Prince Mohammed bin Salman, during which Saudi Arabia’s crown prince underscored the importance of dialogue and reducing regional tensions. Previously, Trump identified Jared Kushner, special envoy Steve Witkoff, and Secretary of State Marco Rubio as participants in the talks. Washington has yet to release a definitive schedule for the negotiations. Despite this, Saudi Arabia continues to support direct diplomatic engagement between the United States and Iran.
Negotiations Encompass Nuclear and Maritime Disputes
Since February 28, the United States and Israel have initiated military strikes targeting Iran, with Washington asserting that these operations aimed at Iranian missile capabilities and nuclear facilities. A temporary ceasefire was established during part of June, but the arrangement ultimately broke down, leading to a resumption of military actions. Iran maintains its stance that it does not seek a nuclear weapon and defends its right to civilian nuclear technology, dismissing claims to the contrary.
The Strait of Hormuz remains central to ongoing negotiations due to its role in global energy transportation, as approximately one-fifth of worldwide oil and liquefied natural gas shipments pass through this channel. Iran’s restrictions have curtailed tanker traffic, driving up transportation costs, and recent security incidents near Oman have raised concerns. Reports indicated that a projectile damaged a tanker’s engine room over the weekend, though no casualties were reported.
Crude Oil Prices Decline Following Policy Shift Announcement
Oil prices experienced a significant decline on Monday after Trump announced that the planned U.S. military strike would be canceled if an agreement was rapidly reached. Brent crude fell by $4.49, or 5.1%, trading at $83.44 per barrel early in the day, while U.S. West Texas Intermediate dropped by $4.90, or 5.8%, to $79.77. Both benchmarks had increased more than 20% throughout July. Additionally, OPEC+ approved an increase of roughly 188,000 barrels daily for September.
By early Monday, no conclusive nuclear, maritime, or security agreement had been finalized. Trump linked the cancellation of the strike to the swift conclusion of a deal, while Iran continued its negotiations with Oman and maintained military readiness. Israel stated that it remained in close security coordination with the United States. The core issues of the negotiations involve navigation through the Strait of Hormuz, Iran’s nuclear activities, and the conclusion of the five-month-long conflict.