The US, Iran and Oman are closing in on an interim agreement to reopen the Strait of Hormuz, with the US aiming for a Wednesday announcement, according to two regional sources and a US official, Axios reports.

The deal, which has been under negotiations for several weeks, is aimed at resuming the ceasefire between the US and Iran and restarting negotiations over a nuclear deal.

According to two regional sources, the deal under discussion sets up a 60-day temporary arrangement between Oman and Iran in the Hormuz strait, which could be extended.

All inbound traffic of ships through the strait and into the Gulf would go in a northern lane through Iranian waters.

All outbound traffic through the strait and into the Arabian Sea would go in a southern lane through Omani waters, in coordination with Iran.

No tolls or fees would be charged during the 60-day period.

The parties would work on clearing naval mines from the median lane of the strait within 30 days.

After the median lane is cleared, it would be used for inbound and outbound traffic under the terms of a permanent arrangement to be negotiated between Oman and Iran.

In addition to the talks between Oman and Iran, Qatari, Pakistani, and Saudi officials were also involved in the mediation efforts, regional sources say.

In recent days, there were several calls between US President Donald Trump’s envoy Steve Witkoff, Iranian Foreign Minister Abbas Araghchi, and Omani Foreign Minister Badr al-Busaidi.

Two regional sources said Araghchi agreed in principle over the weekend but still needed approval from Iran's Supreme Leader, Mojtaba Khamenei, and the Supreme National Security Council.

A US official and a regional source said Iranian leadership completed its approval process on Tuesday.