US-Israel-Iran War Latest LIVE News: ‘Free and Open,’ US Confirms Key Shipping Route Is Open as Iran Talks Near Breakthrough, Oil Prices Sli

US-Israel-Iran War Latest Live News: US confirms key shipping route remains open as Iran talks advance. Oil prices ease after Scott Bessent signals a possible deal to restore normal maritime transit.

By: Sumit Kumar
Last Updated: August 5, 2026 08:29:06 IST

US-Israel-Iran War Latest Live News: Fresh diplomatic efforts to reduce tensions in the Middle East have raised hopes that one of the world’s most important oil shipping routes could remain fully operational despite weeks of regional conflict. The United States has confirmed that commercial vessels continue to move safely through the Strait of Hormuz while negotiations involving Iran, Oman and other regional stakeholders gather pace.

The development has eased concerns in global energy markets, sending oil prices lower as investors anticipate a possible breakthrough that could stabilise crude supplies and international trade.

US-Israel-Iran War Latest Live News: US Military Confirms Strait of Hormuz Is Open

The U.S. military said commercial shipping continues to move through the Strait of Hormuz without disruption.

U.S. Central Command (CENTCOM) stated that the “southern route of the Strait of Hormuz remains free and open”, adding that American forces have helped more than 1,000 commercial vessels transit the strategic waterway despite what it described as “unwarranted” Iranian aggression.

The southern shipping lane runs through Omani territorial waters, allowing vessels to avoid waters closer to Iran.

The announcement reassured shipping companies and energy markets that one of the world’s busiest maritime trade routes remains operational.

US-Israel-Iran War Latest Live News: US Treasury Signals Progress in Iran Talks

Investor confidence improved after U.S. Treasury Secretary Scott Bessent indicated that diplomatic negotiations with Iran were making progress.

Speaking on CNBC’s Squawk Box, Bessent said, “We are in talks with the Iranians.”

He added, “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 comments fueled expectations that negotiations could produce a temporary agreement to reduce tensions in the Gulf.

US-Israel-Iran War Latest Live News: Oman and Pakistan Playing Key Diplomatic Roles

According to officials familiar with the discussions, Oman has become the main venue for negotiations aimed at reopening the Strait of Hormuz.

Diplomatic sources said the United States and several European countries are encouraging Oman to support a temporary agreement with Iran that would guarantee safe commercial navigation.

Another senior official said discussions are also receiving mediation support from Pakistan, while the United States remains involved indirectly.

Although negotiators have not announced a formal agreement, officials say talks have moved closer to a final framework.

US-Israel-Iran War Latest Live News: Oil Prices Drop as Supply Concerns Ease

Energy markets responded positively to signs of diplomatic progress.

Brent crude recovered slightly to trade near $79.70 per barrel after falling more than 5% during the previous session.

West Texas Intermediate (WTI) crude also edged higher to around $75.95 per barrel, following a sharp decline of nearly 6% a day earlier.

Market analysts said hopes of uninterrupted oil shipments through the Strait of Hormuz reduced fears of a prolonged supply disruption.

US-Israel-Iran War Latest Live News: Pentagon Rejects Reports of Missile Shortages

Alongside developments in the Gulf, the White House and Pentagon pushed back against reports claiming the U.S. military had significantly depleted its missile stockpiles during recent operations involving Iran.

Recent media reports suggested the U.S. had used a large share of its long-range precision weapons and missile defence interceptors.

President Donald Trump rejected those claims, saying, “far more munitions than anyone in the world, and far more than we need.”

He also said U.S. defence manufacturers were “making more munitions than they have ever made before, in addition to expanding their plants and equipment at record levels.”

White House deputy press secretary Anna Kelly also defended U.S. military preparedness, saying:

“The United States Military has more than enough munitions, ammo, and stockpiles to serve all of President Trump’s strategic goals and beyond, and Operation Epic Fury has exposed what happens when you mess with the United States.”

US-Israel-Iran War Latest Live News: What Comes Next?

Diplomatic discussions are expected to continue over the coming days as negotiators work toward a temporary arrangement that could keep the Strait of Hormuz fully accessible for commercial shipping.

If an agreement is finalised, it could reduce geopolitical tensions, stabilise energy markets and provide greater certainty for global trade. However, officials caution that negotiations remain sensitive until all parties formally approve any deal.

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