Dubai/Washington, Aug. 5 (SANA)U.S. PresidentDonald Trumpsaid on Wednesday that Washington and Tehran held “very good discussions” during negotiations that continued throughout Tuesday, raising expectations that the two sides could be nearing an agreement to reduce tensions after five months of conflict.

Oil prices fell and Asian stocks rose on Wednesday after Wall Street reached record highs, driven by hopes that a deal could soon restore shipping through theStrait of Hormuz, a key global energy route.

Trump told Fox News that Iran had engaged in negotiations throughout the day and said the Strait of Hormuz “will open very soon.” He warned that if Tehran backed away from a deal, it would face “very hard” strikes.

Trump has repeatedly threatened military action if Iran fails to reach an agreement, while later pointing to diplomatic progress in talks that have so far failed to end the fighting.

Axios, citing two regional sources and a U.S. official, reported that Washington and Tehran were nearing a temporary agreement to reopen the Strait of Hormuz with Oman’s involvement. The report said the United States was seeking to announce the agreement on Wednesday.

Iranian state media, however, quoted an informed source as saying that any agreement with Oman over the strait would be delayed “as long as the United States continues to threaten Iran.”

The Strait of Hormuz, through which around one-fifth of global oil and liquefied natural gas shipments normally pass, has remained a major point of dispute during the conflict.

Trump outlined U.S. objectives in the conflict with Iran, including dismantling Iran’s nuclear program, limiting its ability to attack regional adversaries and creating conditions for political change in Iran.

Shipping traffic through the Strait of Hormuz has been heavily disrupted during the conflict, while Washington continues restrictions on Iranian shipping and ports.

Qatarsaid earlier that mediators were making progress in efforts to end the conflict, despite Tehran’s denial that direct talks were underway.

Qatar’s Amiri Diwan said Trump and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani discussed in a phone call on Tuesday efforts to narrow differences between Washington and Tehran and increase the chances of reaching a lasting settlement.

Iranian Foreign Ministry spokesperson Esmail Baghaei said talks withOmanover passage through the strait were positive and ongoing, focusing on establishing safe shipping routes.

Tehran rejected an Omani proposal last week that would have allowed joint oversight of the strait and voluntary fees from vessels.

The International Maritime Organization (IMO) said at least 17 sailors had been killed in 64 incidents in the Strait of Hormuz since the conflict began on Feb. 28.