Iranian and Omani negotiators have finalized the draft deal to reopen the Strait of Hormuz and are awaiting a final approval from Iran's supreme leader, two regional officials told The Associated Press on Wednesday.

The officials, who were briefed on the negotiations, portrayed the potential deal as a temporary solution to the U.S.-Iranian dispute over vessels' transit through the Strait of Hormuz.

Even as hopes increased that a deal on the Strait of Hormuz could be imminent, attacks on shipping in the region continued.

The Iranian-backed Houthi rebels claimed Wednesday they had fired ballistic missiles toward a Saudi oil tanker called the Wafa in the Red Sea. Brig. Gen. Yahya Saree, a military spokesman for the Houthis, said in a prerecorded statement that the vessel was targeted off the Saudi port city of Yanbu. He didn't provide evidence.

An Israeli military probe published Wednesday said that friendly fire may have killed an Israeli settler during a deadly clash with Palestinians in the occupied West Bank last month.

The violence in the Palestinian village of Tell in the northern West Bank in late July left four Palestinians and two Israelis dead, prompting the army to launch an investigation.

Millions of Shiite Muslims observed the annual Arbaeen pilgrimage Tuesday in the Iraqi holy city of Karbala, under the shadow of ongoing regional tensions and fears of another round of escalation in the U.S.-Iran war.

Arbaeen is held 40 days after Ashoura, which commemorates the killing of Imam Hussein, grandson of the Prophet Muhammad, and members of his family, at the Battle of Karbala in 680 A.D.

Prime Minister Benjamin Netanyahu said Tuesday that Israel will not withdraw from its current lines in Gaza until Hamas has completely disarmed and pushed back on a recent deal announced by U.S. President Donald Trump.

Netanyahu's remarks cast more doubt on the deal to disarm Hamas, which was seen as a potential breakthrough for ending the war. It also marked a rare public display of friction with the Trump administration.

U.S. President Donald Trump said a deal on the Strait of Hormuz could come as early as Wednesday or Thursday, while Iran and Oman inched toward an agreement to reopen the critical waterway and potentially help bring an end to the war.

Trump was asked by reporters traveling with him in California about a report on the Axios news site that an announcement on the Strait of Hormuz could be made on Wednesday.

A cargo vessel was struck by an "unknown projectile" in the Strait of Hormuz off the coast of Oman, a British maritime agency said on Tuesday, without giving specifics on damage or injuries.

U.S. President Donald Trump said that negotiations with Iran were ongoing despite Tehran's denials and the Islamic Republic was facing a "last chance before decapitation."

U.S. President Donald Trump's Board of Peace on Monday assured Prime Minister Benjamin Netanyahu that Israel's withdrawal in Gaza would only begin after Hamas' complete disarmament, following his objections.

A magnitude 5.6 earthquake shook eastern Egypt early Monday, prompting authorities to activate response plans although there were no immediate reports of casualties.