U.S. President Donald Trump said a deal on the Strait of Hormuz could come as early as Wednesday or Thursday, while Iran and Oman inched toward an agreement to reopen the critical waterway and potentially help bring an end to the war.

Trump was asked by reporters traveling with him in California about a report on the Axios news site that an announcement on the Strait of Hormuz could be made on Wednesday.

“It could happen. Tomorrow or the next day,” he said, speaking on Tuesday evening California time, which was already Wednesday morning in the Middle East. “A lot of progress has been made.”

Oil prices eased on hopes of progress for a deal that would allow oil tankers to freely exit the Persian Gulf again and deliver crude around the world. Brent crude, the international standard, slipped by 1.2% to $78.43 per barrel early Wednesday.

The possible agreement emerging from talks between Iran and Oman calls for ships to enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman, two regional officials told The Associated Press. Service fees would be charged for providing security and preserving the maritime environment, the officials said.

The officials spoke on condition of anonymity to discuss the sensitive negotiations.

The Trump administration has previously ruled out any deal that would give Iran control over the strait, which was an open international waterway before the the U.S. and Israel attacked Iran on Feb. 28. About one fifth of the world’s oil and natural gas passed through the strait, but shipping through the waterway has been reduced to a trickle at best by Iran’s attacks since the start of the war.

In an exchange with reporters on Monday, the U.S. president reiterated his public opposition to tolls being charged in the strait. “I’m not going to let them charge,” Trump said. “Anybody’s going to charge, we’ll charge.”

The regional officials said negotiations are still underway and that the final agreement could take a different form, with any deal linked to lifting the U.S. blockade on Iran’s ports.

Iranian Foreign Ministry spokesman Esmail Baghaei said Tuesday that Tehran’s talks with Oman were focused on “establishing safe inbound and outbound shipping lanes,” routes that “uphold sovereign rights while also addressing the national security considerations of both Iran and Oman.”

“The final results of these negotiations will be announced once concluded,” he added, according to Iran’s state-run IRNA news agency.

U.S. Secretary of State Marco Rubio confirmed progress had been made in those talks, “but not finality yet.”

Rubio has previously ruled out any deal that would give Iran control over the strait, saying last month that would create a “very dangerous precedent” for other parts of the world.

U.S. Treasury Secretary Scott Bessent told CNBC that “there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict.”

Qatar’s emir, Sheikh Tamim bin Hamad Al Thani, said he also spoke to Trump by phone on Tuesday as the Arab country tries to broker a resolution to the war.

Al Thani’s office said the two discussed ways to bridge the divide “in a way that enhances the prospects of reaching a sustainable diplomatic settlement to the crisis.”

Trump is under mounting pressure to end an unpopular war that has driven up gas prices ahead of midterm elections and drawn down U.S. supplies of some munitions. In recent days, he has again alternately threatened massive strikes and voiced support for diplomatic efforts.

Trump said Monday that the U.S. was in talks with Iran, saying it was Tehran’s “last chance” to reach a deal and avoid another U.S. military escalation.

“The first phase is the opening of the straits. The second phase will be the denuclearization,” Trump said. “And that will take a little while.”

Iran has denied it is negotiating with the U.S., saying the talks are only with Oman.

An Indian-flagged commercial ship sank Tuesday in the Red Sea off Yemen after being struck by an explosive-laden boat, Yemeni and Indian authorities said.

Yemen’s coast guard rescued the crew, which included 13 Indians and a Yemeni.

There was no immediate claim of responsibility, but Yemen’s Iran-backed Houthi militants have repeatedly struck ships traversing the Red Sea near Yemen.

Last month, the Houthis announced they were closing the Bab el-Mandeb Strait that leads to the Red Sea for Saudi-linked shipping in retaliation for the kingdom’s blockade on Yemen and an attack on the international airport in Yemen’s rebel-held capital, Sanaa.

Earlier Tuesday, a cargo ship reported being “hit by an unknown projectile” while traversing the Strait of Hormuz, according to the United Kingdom Maritime Trade Operations Center.

The center said the reported strike damaged the vessel at around 2 a.m. local time while it was about 37 kilometers (23 miles) northeast of Al Khasab, a port city in Oman. The British maritime security firm Ambrey said the ship sustained damage.

(AP)