US and Iran seek Hormuz compromise as Trump keeps military option open

The United States and Iran have resumed talks concerning the strategic Strait of Hormuz, with mediation efforts led by Oman and Qatar. The renewed discussions aim at reaching a compromise on maritime access and establishing a broader framework for de-escalation. These talks occur against the backdrop of ongoing U.S.-Iran tensions, with President Donald Trump maintaining the possibility of military action. The negotiations remain indirect and are not focused on achieving a final peace agreement, but rather on stabilizing a key global shipping route. Key Takeaways The resumption of US-Iran talks, mediated by Oman and Qatar, suggests potential diplomatic progress, which may increase the likelihood of a meeting by the end of July. Market pricing reflects a slight increase in confidence, with the probability of a diplomatic meeting by July 31 rising from 6% to 7.5% over the past 24 hours. The broader tension around the Strait of Hormuz continues to impact global shipping and energy markets, with potential outcomes heavily influenced by military and diplomatic developments. What to Watch Observers will focus on any official announcements from the White House or Iranian Foreign Ministry r...