Iran, US Say Hormuz Deal is Close      08/06 06:20

   Iran said Wednesday it is in the "final stage" of drafting an agreement with 
Oman over the Strait of Hormuz, and U.S. President Donald Trump has said a deal 
could be announced this week. That could potentially reopen the critical 
waterway, ease pressure on the world economy and help bring an end to the war.

   CAIRO (AP) -- Iran said Wednesday it is in the "final stage" of drafting an 
agreement with Oman over the Strait of Hormuz, and U.S. President Donald Trump 
has said a deal could be announced this week. That could potentially reopen the 
critical waterway, ease pressure on the world economy and help bring an end to 
the war.

   But the agreement is likely to be contingent on the U.S. lifting its 
blockade on Iran's ports. The Trump administration has previously ruled out any 
deal that would cement Iran's grip over the strait, which would amount to a 
major loss for the U.S. and a break with global norms.

   Iran has insisted on some measure of control over the strait, saying it will 
not go back to being an open international waterway, as it was before the war.

   The U.S., along with Israel, launched the war on Feb. 28, citing various 
goals including toppling Tehran's government and ending its nuclear program. 
Those have not been achieved, and the conflict has devolved into a fight over 
the strait as Iran's assertion of control and attacks on shipping have ground 
traffic to a near halt.

   Closure of the strait, through which a fifth of the world's traded oil and 
natural gas once passed, has driven up the price of fuel and basic goods, 
roiling the global economy. Trump is also under mounting pressure to end an 
unpopular war ahead of U.S. congressional elections.

   Iran's Foreign Ministry spokesperson, Esmail Baghaei, said that the 
agreement with Oman is in the "final stage" of drafting, and that a joint 
statement will be issued "if certain parties do not obstruct this process," 
apparently referring to the U.S.

   Regional officials tell AP negotiators have finalized a draft

   Iranian and Omani negotiators have finalized the draft deal to reopen the 
strait and await final approval from Iran's Supreme Leader Ayatollah Mojtaba 
Khamenei, two regional officials told The Associated Press on Wednesday. 
Khamenei is believed to have been wounded in the war's opening strikes and has 
not been seen in public since then.

   The officials, who were briefed on the negotiations, portrayed the potential 
deal as a temporary solution to the dispute over the strait. They said it is 
tied to an agreement reached between the U.S. and Iran in June that aimed at 
ending the fighting and reopening the waterway but ultimately collapsed.

   The officials, who spoke on condition of anonymity to discuss the private 
talks, said the potential deal will pave the way for the U.S. and Iran to 
resume negotiations on Tehran's nuclear program.

   Earlier, they had said the potential agreement would have ships enter the 
Persian Gulf through an Iranian-controlled route and exit through a route 
controlled by Oman. Service fees would be charged for providing security and 
preserving the maritime environment, the officials said.

   The U.S. has said it is strongly opposed to any arrangement that would see 
Iran charge fees.

   Trump said a deal to reopen the strait is close

   Trump was asked on Tuesday evening by reporters about a report on the Axios 
news site that an announcement on the strait could be made on Wednesday.

   "It could happen. Tomorrow or the next day," Trump said. "A lot of progress 
has been made."

   Vice President JD Vance acknowledged Wednesday that it can seem like the 
U.S. is not making progress in Iran, describing the effort to end the war as 
"messy" and that "it's going to take some time"

   Vance said in an interview that aired in the evening on Fox News Channel 
that the Iranians are "extraordinarily difficult people" and that efforts to 
try to resolve the war sometimes require moving backward before moving forward.

   Also on Wednesday, oil prices initially eased but later inched up. Brent 
crude, the international standard, was around $80 per barrel -- still well 
below the levels it hit at the height of the conflict.

   In recent days, Trump has alternately threatened massive strikes and voiced 
support for diplomatic efforts.

   Attacks on regional shipping continue

   The Iranian-backed Houthi rebels in Yemen claimed Wednesday they had fired 
ballistic missiles toward a Saudi oil tanker on the Red Sea off the Saudi port 
of Yanbu, without providing evidence. There was no immediate comment from Saudi 
Arabia.

   A vessel sailing in the Gulf of Aden off Yemen reported a loud explosion 
that happened in close proximity, the British military's United Kingdom 
Maritime Trade Operations center said Wednesday, adding that the crew was safe. 
The Houthis claimed to have fired a ballistic missile at another Saudi oil 
tanker.

   A recent escalation between the rebels and Saudi Arabia threatens to 
reignite Yemen's civil war, which pitted the Houthis against a Saudi-led 
coalition supporting the country's government.

   In July, the Houthis announced they were closing the Bab el-Mandeb Strait 
that leads to the Red Sea for Saudi-linked shipping. That puts additional 
pressure on international shipping since the Red Sea became a key alternative 
route for Saudi oil exports during the war.

   Israel and Hezbollah's ceasefire increasingly shaky

   The shaky ceasefire between Israel and the Iran-backed militant group 
Hezbollah grew more volatile Wednesday, as the Israeli military issued an 
evacuation warning to residents of the southern Lebanese village of Mansouri -- 
the first such warning in weeks.

   Later, the Israeli military said it had begun conducting "precise strikes" 
in southern Lebanon in response to what it described as "a blatant violation of 
the ceasefire" that had largely held since June 20.

   The escalation came as Lebanese and Israeli negotiators met in Rome for a 
second day to discuss implementation of a deal under which Israeli forces are 
supposed to withdraw from areas they are occupying in southern Lebanon in 
exchange for Hezbollah's disarmament.

   A State Department official said the talks in Rome ended early "due to 
events on the ground" but could continue on Thursday. The official, who spoke 
on condition of anonymity due to the sensitivity of the diplomacy, said the 
discussions "were extremely productive."