Uche Cecil Izuora
The United States and Iran have expressed willingness to resume negotiations this week after agreeing to halt recent attacks around the Strait of Hormuz, a development that has helped ease concerns over global oil supplies and maritime security.
President Donald Trump said Monday that talks are expected to take place Tuesday in Doha after Iran requested a meeting.
Iranian officials, however, said no meeting had been officially scheduled and did not confirm Qatar as the venue.
The diplomatic efforts follow several days of renewed attacks that briefly disrupted shipping through the Strait of Hormuz, a critical transit route that carries roughly one-fifth of global oil and liquefied natural gas supplies.
A U.S. official told Bloomberg that both sides have agreed to stand down for now, allowing vessels to resume transits through the waterway. Shipping activity had recovered following the June 17 memorandum aimed at ending hostilities but slowed again over the weekend after renewed military exchanges underscored the fragility of the ceasefire.
Oil prices pared earlier gains as tensions eased. Brent crude traded below $73/bbl after the U.S. and Iran agreed to halt mutual attacks.
“The market feels increasingly comfortable treating these moves as tactical rather than structural,” Haris Khurshid, chief investment officer at Karobaar Capital LP, told Bloomberg. “Until something fundamentally changes, traders are happy to fade both the rallies and the sell-offs.”
Despite improving conditions, uncertainty remains. Shipowners continue to navigate heightened security risks, and discussions continue over the future management of the Strait of Hormuz.
Iran’s Deputy Foreign Minister Kazem Gharibabadi said Tehran recently held talks with Oman regarding future administration of the strategic waterway. Meanwhile, the U.S., European governments and Gulf Arab states have voiced opposition to proposals that could impose transit charges on vessels using the strait, warning that such measures could increase energy costs and establish a precedent for other key maritime trade routes.
The latest developments suggest immediate risks to oil flows through Hormuz have eased, though shipping activity has yet to fully return to pre-conflict levels as markets await confirmation of renewed diplomatic talks