US Vice President JD Vance has indicated that a deal between the United States and Iran to reopen the Strait of Hormuz is 'very close' but 'not there yet,' pending approval from former President Donald Trump. The tentative agreement, reportedly reached by negotiators, would extend the current ceasefire by 60 days and initiate new talks on Iran's nuclear programme.
Key Details of the Tentative Agreement
According to sources, the memorandum of understanding (MOU) includes provisions for 'unrestricted' shipping through the strategic Strait of Hormuz, a vital passageway for global oil supplies. Iran would be required to remove all mines from the waterway within 30 days, while the US naval blockade would be lifted. However, Vance noted that 'a couple of language points' remain unresolved, and Trump's approval is uncertain given his prior demands for both the reopening of the Strait and Iran's complete abandonment of its nuclear ambitions.
Market Reaction to the News
The prospect of a deal has already impacted global markets. Oil futures fell by more than 1 per cent on Friday, marking their steepest weekly decline since early April. Traders are optimistic that the reopening of the Strait of Hormuz would ease supply concerns and stabilize prices.
Trump's Threats Against Oman
In a related development, Donald Trump issued a threat to 'blow up' Oman if it did not comply with his demands regarding the Strait of Hormuz and sign the Abraham Accords. This statement comes despite existing economic and military ties between the US and Oman, raising concerns about regional stability.
The situation remains fluid, with all eyes on Trump's decision as the 60-day ceasefire extension hangs in the balance.
