Following a newly established agreement between the United States and Iran, tankers have successfully carried 6 million barrels of crude oil through the Strait of Hormuz. This route was approved by Tehran to allow safe passage for vessels, according to Bloomberg.
The Strait of Hormuz, a critical passage for transporting 20-30% of the world’s total oil and liquefied natural gas, had been blocked amid rising tensions among Iran, Israel, and the United States. The reopening of the strait was a key component of the recent agreement between the parties. Axios reported that under the memorandum, Iran was expected to ensure free passage for vessels through the strait within 60 days, with potential fees to be implemented afterward.
While shippers believe that transit levels through the strait are unlikely to return to pre-war figures for some time due to the need for mine clearance and security guarantees, early signs of change are emerging. Ships that previously concealed their locations by turning off transponders are now openly displaying their coordinates and preparing to navigate the strait. In response to these developments, Brent crude oil futures have dipped by two percent, falling below $78 per barrel, marking the lowest price since the onset of hostilities.
Context
- On May 28, the countries reached a 60-day ceasefire memorandum aimed at initiating negotiations concerning Tehran’s nuclear program. On June 1, Trump announced he had fulfilled Iran’s condition to halt hostilities between Israel and Lebanon.
- On June 14, Reuters published a draft of a potential memorandum of understanding between Iran and the US, covering various topics from Tehran’s nuclear program to resuming shipping through the Strait of Hormuz. A source indicated that a final agreement would be discussed within 60 days following the initial agreement.
- On the same evening, Pakistani Prime Minister Shahbaz Sharif noted on social media that the US and Iran had reached a peaceful accord after intensive negotiations. Trump confirmed this on Truth Social.
- In the night hours of June 18, the US and Iran signed a memorandum of understanding to end the war, with Axios revealing that the document was much more modest than earlier terms Trump had deemed necessary for resolving the conflict with Tehran.
