US President Donald Trump said an agreement to reopen and ensure maritime security in the Strait of Hormuz is expected to be finalized in the near future. The statement was made after he described the negotiations with Iran as showing very positive developments.
Trump announced that the agreement could be reached as early as the next day, thus increasing hopes that the five-month conflict between the US and Iran will end.
Hopes for a Deal Press Oil Prices
The progress of the negotiations has had a positive impact on market sentiment as crude oil prices fell, while global stock markets recorded an increase.
Trump also stressed that the Strait of Hormuz is expected to reopen soon. However, he warned that the US will take military action if the negotiations fail to reach an agreement.
In the same development, the US Military announced that the southern route of the Strait of Hormuz remains safe and open to all commercial ships. The US Central Command (CENTCOM) also stated that more than 1,000 ships have successfully passed through the route despite facing security threats before.
Negotiations Involving Iran, Oman and Pakistan
US Treasury Secretary Scott Bessent also confirmed that Washington is holding talks with Iran and hopes that an agreement can be reached in the near future to allow the Strait of Hormuz to reopen.
Following the statement, Brent and West Texas Intermediate (WTI) oil prices have stabilized after recording a significant drop in the previous trading session.
Diplomatic sources also informed that negotiations involving Iran and Oman are underway with Pakistan acting as a mediator, while the US is indirectly involved.
Documents related to the reopening of the Strait of Hormuz are reportedly almost finalized, thus signaling that the world's most important energy trade route has the potential to return to normal operations in the near future.
