President Donald Trump signaled on Tuesday, August 4th, 2026, that the United States and Iran are nearing a deal to reopen the Strait of Hormuz, a vital corridor for global oil shipments. Speaking after attending a Republican National Committee fundraising event in Los Angeles, Trump said, "Tomorrow or the next day, a lot of progress has been made."

Trump also told Fox News that his administration was engaged in "very good discussions" with Iranian officials, including an "all-day negotiation," and expressed confidence that the strait "is going to be open very soon." He warned, "If they back out again, they are going to get hit really hard."

The announcement comes as Brent crude prices fell 1.6 percent to $80.59 per barrel early Wednesday amid hopes for a resolution that could ease soaring energy costs. According to AAA, the U.S. national average for gasoline was $4.08 per gallon, one cent cheaper, reflecting market anticipation.

Both sides appear to have returned to the negotiating table after initially abandoning an interim peace deal signed in June. That deal aimed to end the conflict, reopen the strait, and address Iran's nuclear program.

Regional tensions remain high, with the deaths of four U.S. service members since hostilities resumed after July 7th, and Iran-backed Houthi militants from Yemen establishing a blockade in the Red Sea to halt Saudi oil shipments, raising fears of a broader conflict.

However, Iranian officials reportedly state that talks concerning the Strait of Hormuz are only being held with Oman, not the U.S., according to the state-run Fars News Agency citing a source close to the Iranian negotiating team.

Additionally, an Indian-flagged ship sank in the Red Sea off Yemen’s coast after being struck by a boat laden with explosives, according to Yemeni and Indian authorities.

Sources