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US and Iran weigh phased plan to reopen Strait of Hormuz

Markets reacted to the proposal, with crude trading around $94.6 and the 10-year Treasury yield near 5.1%.

Reported · Written up by our desk · Central Banks

Discussions between the United States and Iran are centered on a phased arrangement that would aim to reopen the Strait of Hormuz and end the US blockade, according to analysis cited by Forexlive and based on Reuters reporting.

The reporting highlights that Gulf states reject Iranian control of the strait, while Iran has indicated flexibility on fees but not on the Strait of Hormuz itself. It also notes that neither side appears willing to surrender leverage first, making the sequence of steps as significant as the terms.

Forexlive said the proposal could help ease shipping disruptions if ships regain passage, but it remains exactly that, a proposed pathway rather than a signed agreement. Until control and passage details are clarified, traders may see headline-driven moves, but shipping arrangements are expected to matter more.

The piece also tied the story to market moves, noting crude oil around $94.55, down from about $96.70 before the announcement, alongside a dip in the 10-year Treasury yield to roughly 5.139% and a lower 2-year yield near 4.88%. It added that US stocks had pared losses, with the S&P 500 down about 0.1% and the Nasdaq down about 0.2%.

Latest closeWTI crude $95.27 ▲3.4%|S&P 500 7,675.92 ▼0.4%|Nasdaq Comp. 26,749.30 ▼0.7%

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