US and Iran having ‘very good discussions’, Trump says

(Reuters)

DUBAI/WASHINGTON, Aug 5 – U.S. President Donald Trump said his administration had “very good discussions” with Iran during all-day negotiations ​on Tuesday, fuelling expectations of an imminent end to the five-month conflict.

Oil prices fell and stocks jumped in Asian trade on Wednesday ‌after Wall Street hit record highs on hopes that a deal could soon be reached to restore traffic through the blockaded Strait of Hormuz.

The Reuters Iran Briefing newsletter keeps you informed with the latest developments and analysis of the Iran war. Sign up here.

“They had an all-day negotiation,” Trump told Fox News’ “@ Night” show. The Strait of Hormuz “is going to be open very soon,” Trump added. “If they back out again, they are going to get hit really hard.”

Trump has ​often threatened massive strikes if Tehran did not reach an agreement and then cited progress in talks that have so far failed to ​end hostilities.

Axios, citing two regional sources and a U.S. official, reported the U.S. and Iran are closing in on an ⁠interim agreement to reopen the strait with the agreement of Oman, which controls part of the waterway. The report said Washington was aiming for an ​announcement on Wednesday.

However, Iranian state media, citing an informed source, said an agreement with Oman on the strait, which normally carries about a fifth of global ​oil and liquefied natural gas shipments, will be delayed “as long as the United States continues to threaten Iran.”