A pause in U.S.-Iran hostilities has sped up diplomatic efforts to secure a temporary agreement to reopen shipping through the Strait of Hormuz, a major flashpoint in the conflict.

Over the weekend and into Monday, Iran and Oman were negotiating a plan and crafting the terms of an agreement to ensure the safe passage of ships through the key waterway, reported the Wall Street Journal on Monday.

The limited U.S.-Iran talks are aimed at securing a temporary agreement to ease tensions, lift maritime blockades, and pave the way for broader negotiations on implementing the preliminary peace deal reached in June.

Oman has proposed a regionally backed plan for Iran to jointly manage the Strait of Hormuz through a shared mechanism with voluntary fees, rather than allowing Iran sole control of the strategic waterway, Reuters reported on Tuesday.

Iran is proposing a Strait of Hormuz cooperation model inspired by the Strait of Malacca, where users voluntarily fund navigation, environmental protection, and search-and-rescue efforts. Foreign Minister Abbas Araghchi discussed the proposal with his Omani and Saudi counterparts, stressing regional cooperation to restore stability and reduce insecurity in the waterway, which Iran blames on U.S. actions, as per Iran's foreign ministry statement.

Trump Sees Hope For Iran Peace Talks

The U.S. unexpectedly halted its airstrike campaign against Iran over the weekend, boosting hopes for a diplomatic breakthrough that could reopen shipping through the Strait of Hormuz. "What the president is doing right now, as we've seen all along, is giving some talks some space," Mike Waltz, the U.S. ambassador to the UN, said during NBC's Meet the Press.

On Monday, Iran said it will not allow the U.S. to dictate the course or timing of the war, calling Washington trapped in a "self-made quagmire" five months into the conflict.

Tehran said Gulf states continue to mediate with the U.S., but denied holding direct talks with Washington, adding that it will balance diplomacy with defending its interests. Iran also said the Strait of Hormuz remains closed and that its discussions with Oman are limited to bilateral relations.

Later, President Donald Trump said the U.S. is engaged in "very friendly negotiations" over the Iran conflict and voiced optimism that the war could soon end, noting there have been no exchanges of strikes between the two sides for a third straight day. Speaking aboard Air Force One, Trump said he believes "there's a good chance that something could happen."