US, Qatar See Progress on Iran Ceasefire as Trump Slams Oil Companies for Profiteering

Washington, D.C. – US and Qatari officials have said progress is being made in restoring a ceasefire in the US-Iran war and reopening the strait of Hormuz, as Donald Trump simultaneously criticized oil companies for profiting from the conflict.

The optimistic speculation on Tuesday brought oil prices down 2%, but the strait remained closed to shipping and a cargo vessel was reportedly struck by an unidentified projectile off Oman's coast close to the strait. Britain's maritime security agency, UKMTO, reported the strike on Monday night but did not name the vessel.

The US treasury secretary, Scott Bessent, said the US and Iran were negotiating and told CNBC television: "I think there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalised position in this conflict."

His remarks echo similarly upbeat comments on Monday from Donald Trump, who claimed that a breakthrough was imminent, though Tehran quickly denied it was involved in any direct talks with the US.

Qatari and Pakistani mediators said they were talking to both sides in an effort to close gaps, restore the ceasefire deal from the memorandum of understanding (MoU) signed in mid-June and reopen the Hormuz strait, which was the portal for a fifth of the world's oil and liquified natural gas.

Diplomatic Efforts

Qatar's foreign ministry spokesperson, Majed al-Ansari, said Qatar, Pakistan and Oman were mediating in close coordination and exchanging draft proposals between Washington and Tehran. He said the diplomatic contacts had reached "very progressive stages".

A senior Pakistani security official told Reuters news agency: "A lot is happening in the background … We are talking to both sides. Our sole goal at this moment is to make both parties at least agree to start talking."

However, neither Qatar nor Pakistan are directly involved in the focus of negotiations in recent days, which has been between Iran and Oman on a temporary transit scheme that would allow ships to enter and leave the Gulf. The MoU broke down in July when vessels tried to cross the strait along the Omani coast without seeking Iranian approval, and Iran attacked them.

Red Sea Attack

On Tuesday, the crew of an Indian-flagged commercial ship that sank in the Red Sea after an attack was rescued, a local Yemeni official said, with Delhi condemning the "unprovoked" aggression.

Yemen's internationally recognised government blamed the Iran-backed Houthi rebels for the attack, according to the official Saba news agency. Last month, the Houthis declared a Red Sea maritime blockade of Saudi Arabia, and have since claimed several attacks on oil tankers and infrastructure.

All the crew of MSV Faize Noore Oliya, comprising 13 Indian nationals and one Yemeni, were rescued after the vessel came under attack south of the port city of Hodeida, the Yemeni official said.

India's shipping minister, Sarbananda Sonowal, said on X: "India strongly condemns this unprovoked attack", saying the vessel was "hit by a projectile near Yemeni waters".

Oman Under Pressure

Regional diplomats involved in the talks about the strait of Hormuz said Oman was under concerted US, European and Saudi pressure to accept a temporary scheme that would allow shipping to enter the Gulf via a route through the strait close to Iran, and then leave on a southern route along the Omani coast, which would be jointly controlled with Iran.

The contentious issue of Iran's demand to charge transiting vessels tolls or other fees would be left to be decided during a 60-day negotiating period, during which time Iran's nuclear programme would also be addressed.

The Omani government has been resisting the Hormuz proposal out of fear it could become permanent and give Tehran an enduring say over sea routes in Omani waters, the regional diplomats said.

Iran's Response

The Iranian state-run broadcaster IRIB reported on Tuesday evening: "These negotiations, taking place between the two coastal countries of the strait of Hormuz, are focused on determining safe routes for ships to transit. The talks have so far been assessed as positive at both the technical and political levels, and Iran is working with Oman to develop the necessary mechanisms for future arrangements to manage shipping traffic in this strategic waterway."

The talks are complicated by splits in Tehran, according to the diplomats, with the foreign ministry keen to do a deal and fearing Iranian control of the Hormuz strait could prove to be a wasting asset over time as sea traffic finds alternative routes. Regime hardliners, on the other hand, oppose the deal on the grounds that the US administration cannot be trusted to deliver the financial benefits promised in return for opening the strait.

Oil Company Profits Under Fire

In a separate development, Donald Trump has criticised oil companies for "making too much money" from the global energy market disruption caused by his war on Iran.

Brent crude had been trading at about $70 a barrel before the first US-Israeli strikes at the end of February, but by the end of April it had soared as high as $126 and is now trading at about $85 a barrel.

The US president took aim at the windfall profits revealed last week by ExxonMobil and Chevron, and said the companies would "give some of that back to the public".

"They're making too much money based on a shortage," he told reporters at the White House on Monday evening. "I don't like it."

Trump was speaking just hours before BP reported its profits had doubled in the last quarter, to $5.7bn.

The US oil companies made profits totalling more than $26bn for the three months to the end of June by taking advantage of the energy market disruption triggered by the US-Israeli war on Iran.

Chevron reported its highest ever quarterly profit of $12.2bn, a fivefold increase on the same period last year. ExxonMobil reported a profit of $14.5bn in the second quarter, double what it made in the same period a year ago and its highest quarterly profit since Russia's 2022 invasion of Ukraine.

"Chevron: too much money. ExxonMobil: too much money," Trump said. "They're going to give some of that back to the public and they better cut the retail price, the consumer price."

What's Next

Key developments to watch:

• Hormuz deal: Potential agreement in coming days
• Oil prices: Continued volatility based on diplomatic progress
• Oman's decision: Whether Oman accepts the temporary transit scheme
• Oil company response: How ExxonMobil and Chevron react to Trump's criticism
• Midterm elections: Political implications of gas prices and foreign policy