U.S. and Iran near deal to reopen Strait of Hormuz, officials say

Why it matters locally: A potential U.S.-Iran agreement on the Strait of Hormuz could stabilize global oil markets and shipping costs, affecting Texas's energy sector and petrochemical industries that depend on stable crude supplies and export routes.

---

President Donald Trump, Iranian officials, and Pakistan all indicated Thursday that negotiations between the United States and Iran have progressed substantially, with a potential deal taking shape over control of the Strait of Hormuz. Trump said the agreement could reach completion within days. Iranian leadership echoed that timeline, citing movement on core issues. Pakistan's government, which has facilitated discussions between the two sides, confirmed that negotiators had narrowed their differences. The proposed memorandum of understanding would center on reopening the Strait of Hormuz, a critical waterway through which roughly one-third of global maritime oil trade flows. Control and access to the strait have been a flashpoint in U.S.-Iran relations for decades, with each side accusing the other of threatening shipping traffic. Details of the emerging agreement remained limited Thursday. Neither the U.S. nor Iranian delegations disclosed specific provisions or implementation mechanisms. A Pakistani government spokesperson said mediators had helped both sides move past earlier obstacles but did not specify which issues had been resolved. The timeframe outlined by officials suggests final signing could occur within days, though similar predictions in previous rounds of U.S.-Iran diplomacy have not always materialized. Both governments have faced domestic political pressure regarding how much concession they can tolerate in talks. Trump administration officials characterized the potential accord as a framework that could stabilize regional maritime activity and reduce tensions. Iranian officials framed it as protecting their territorial interests while allowing international commerce to proceed. Pakistan's role as intermediary reflects efforts by third parties to defuse U.S.-Iran hostilities. The country's government has used diplomatic channels to relay positions and propose compromise language when direct talks stalled. The Strait of Hormuz sits between Iran and Oman. Disruptions there carry consequences far beyond the region, affecting global energy prices and supply chains that extend to Europe, Asia, and North America. Shipping associations and energy traders have monitored developments closely. Any durable agreement reopening the waterway to unimpeded traffic would likely ease market concerns about supply disruptions.