Iran names timeline for restoring 'normal' passage through Strait of Hormuz - Bloomberg
Photo: Strait of Hormuz (Getty Images)
Iranian state television has released new details of a potential agreement with the United States that could affect the global oil market, Bloomberg reports.
According to Iranian media, an unofficial draft of an interim peace agreement between Tehran and Washington stipulates that shipping through the Strait of Hormuz could return to normal within a month of the document's final signing.
The draft also includes provisions for lifting the US naval blockade of Iranian ports and withdrawing the US fleet from waters surrounding Iran.
At the same time, it remains unclear how up to date this draft is and whether the American side has agreed to the proposed terms.
One of the key points of the negotiations remains the issue of control over the Strait of Hormuz. According to the draft, Iran and Oman could establish a joint mechanism to oversee shipping in the region.
The United States, for its part, insists on guarantees of free passage for international vessels through the strait.
Following the news of a potential agreement, global oil prices fell sharply. Brent dropped by nearly 5% and fell below $95 per barrel.
Overall, since the beginning of the week, oil prices have declined by more than 8%, as traders increasingly expect a de-escalation between the United States and Iran.
New details of a possible agreement between the US and Iran emerged amid statements by President Donald Trump that the document is already "largely agreed," with only a few conditions left to finalize.
At the same time, Tehran denied reports of a full opening of the Strait of Hormuz, emphasizing that control over the route and shipping will remain with Iran.
In addition, the Financial Times reported that mediators between Washington and Tehran are working on a memorandum to extend the ceasefire for another 60 days and to lay the groundwork for further talks on Iran’s nuclear program.
