Key facts
- Iran is nearing a deal with Oman to define new shipping lanes through the Strait of Hormuz.
- Iran stated that the U.S. must meet several conditions, including compensation and an end to sanctions, for the strait to reopen.
- Oil prices increased due to uncertainty surrounding the Strait of Hormuz reopening.
- Brent crude futures settled at $84.79 a barrel, up 1.44%.
- West Texas Intermediate futures settled at $79.29 a barrel, up 1.08%.
Oil prices climbed amid uncertainty over the reopening of the Strait of Hormuz, a critical chokepoint for global oil and gas shipments. Iran announced it is nearing a final pact with Oman to define new shipping lanes through the strait. However, Iran reiterated that the U.S. must meet several conditions, including compensation for damages, an end to sanctions, and cessation of military threats, before the waterway can be reopened.
A U.S. official confirmed that Iran and Oman are close to a deal that could restore safe passage, stating that the U.S. would lift its blockade of Iranian ports once the agreement to restore commercial shipping is announced. President Donald Trump commented that the U.S. is "low-keying" negotiations with Iran.
Iranian officials detailed conditions including ending U.S. threats, halting aggression, removing a U.S. naval blockade in the Gulf, and lifting sanctions. The U.S. stated its actions would be tied to Iran's implementation of its commitments.
In parallel, Iran's allies, the Houthi rebels, attacked Saudi Aramco's Jazan refinery. The Saudi energy ministry confirmed a fire at the refinery that was extinguished without injuries, but did not state a cause. The United Arab Emirates also reported that Iran had attacked a ship affiliated with its state oil company.