The U.S. has expressed its willingness to lift the blockade on Iran if the Strait of Hormuz is opened — Reuters

The U.S. is prepared to lift the naval blockade of Iranian ports if Tehran reaches an agreement with Oman to open the Strait of Hormuz, a U.S. official told Reuters. The agency did not disclose the official’s name or title.

“There has been progress between Oman and Iran regarding the [Strait of Hormuz], and we expect a deal to be reached soon. As soon as an agreement to restore unimpeded commercial shipping is announced, the U.S. will lift the blockade on Iranian ports,” a source told Reuters. Washington’s actions in this case will depend on Iran’s fulfillment of its obligations, the source added.

The price of Brent crude, which had risen above $84 per barrel earlier in the day, fell by about 0.7% following a Reuters report, though it remained above the day’s low of $81.5 per barrel. U.S. WTI crude oil fell 0.5%. The lifting of the blockade on Iran could lead to a significant volume of oil returning to the market and pave the way for a full resumption of flows through the Strait of Hormuz, Bloomberg notes.

On August 6, the Iranian news agency Fars published a draft plan for regulating shipping in the Strait of Hormuz that prohibited U.S. and Israeli vessels from using the waterway. Iranian lawmakers are discussing the wording of an agreement with Oman, including this provision, which would violate Washington’s demand to ensure free passage through the strait, Bloomberg reported on August 7.

“Agreements to open the Strait of Hormuz remain elusive, and investors remain in limbo. For now, traffic remains low, and the path to a solid deal is unclear,” said Rob Haworth, senior director of investment strategy at US Bank Wealth Management, as quoted by Bloomberg.

This article was AI-translated and verified by a human editor