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US, Iran and Oman near interim deal to reopen Strait of Hormuz
A proposed 60-day arrangement could include toll-based terms for Iran, a structure investors say may affect shipping behavior and risk appetite for oil.
The United States, Iran and Oman are reported to be closing in on an interim agreement aimed at reopening the Strait of Hormuz, with the US working toward an announcement on Wednesday, according to a report cited by FXStreet.
The deal under discussion would set up a 60-day temporary arrangement between Oman and Iran in the Hormuz Strait, with the possibility of extension. Investors are watching whether Iran could be allowed to run a toll-based system near Hormuz, which could reduce freedom of transport through the chokepoint and potentially influence whether ships reroute.
FXStreet notes that WTI crude has seen selling pressure following the report. At the time of writing, WTI traded a little over 1.0% lower at around $73.60.
The report also highlights that Hormuz developments are likely to be closely watched because the Strait is described as a critical chokepoint for almost 20.0% of global energy supply, linking any changes in shipping conditions to oil market expectations.
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