The U.S. and Iran Are Discussing a Deal to Open the Strait of Hormuz and Lift the Blockade — Reuters
The price of Brent crude oil fell from $108 to $104 per barrel
Iranian President Masoud Pezeshkian during his address to the UN General Assembly in New York on September 23 / Photo: UN Photo/Loey Felipe
U.S. and Iranian representatives in New York are discussing a phased end to the war, under which Tehran would open the Strait of Hormuz to shipping and Washington would lift its economic blockade of Iran, Reuters reported, citing sources.
The Strait of Hormuz, through which one-fifth of the world’s oil and petroleum product shipments passed before the war, has become the main bargaining chip in negotiations to end the conflict: The U.S. is seeking freedom of navigation there, while Iran, in return, wants relief from the blockade that is stifling its economy, Reuters reports. The dialogue is complicated by the fact that neither side wants to be the first to back down, two Iranian sources, two regional sources, and two Western diplomats told the agency. “One way forward is to resolve the crisis in stages. The first [step] would be to lift the blockade and reopen the Strait of Hormuz,” a high-ranking Iranian source told Reuters.
The challenge lies not only in agreeing on mutual concessions but also in ensuring they are implemented, according to Reuters sources. The parties signed a memorandum of understanding in July that was intended to launch the peace process, but they resumed hostilities in late August.
What's on the market
Following the Reuters report, the price of Brent crude oil saw its rise slow sharply: prices fell from $108 per barrel to nearly $104. But then they rose above $106 per barrel again, gaining more than 3%.
The U.S. stock market remains in the red, although the broad-market S&P 500 index and the tech-heavy Nasdaq Composite were down by only about 0.1%. The Dow Jones Industrial Average, a blue-chip index, was down 0.4%.
The yield on 30-year U.S. Treasury bonds reached a high not seen since 2004 on Thursday. The yield on 10-year Treasuries rose by 4 basis points, hitting a high not seen since 2007. Two-year bonds are trading near their highest level since 2023.
This article was AI-translated and verified by a human editor
