Iran and Oman develop protocol to “monitor transit” across the Strait of Hormuz, Iranian the official IRNA news agency reported Thursday morning, citing an official.
Tanker traffic using this key oil transportation route “should be supervised and coordinated” with the two countries, said Kazem Gharibabadi, Iran’s deputy foreign minister for legal and international affairs, according to a translation of the IRNA report.
“Of course, these requirements will not mean restrictions, but rather will facilitate and ensure safe passage and provide better services to ships plying this route,” Gharibabadi was quoted as saying.
US stock indiceswhich were trading sharply lower Thursday morning after President Donald Trump signaling that the war in Iran would continue for weeks to come, suddenly intensified following the IRNA report.
Oil pricewhich had also risen overnight, retreated from its highs of the day following reports from Oman, which raised hopes that the Strait of Hormuz might be able to reopen to some extent without requiring military force.
The strait, a vital artery for much of the world’s oil transit, has been effectively closed since the war began on Feb. 28 with U.S. and Israeli strikes against Iran.
Iran’s blockade quickly led to a historic surge in oil prices, creating a cascading crisis with widespread consequences around the world.
Trump insists the United States is not affected by the shutdown because it imports relatively little oil through the strait. “We didn’t need it, and we don’t need it,” he said Wednesday evening in his address to the nation.
But average Gas prices in the United States nevertheless increased by more than 30% in one month, exceeding $4 per gallon for the first time in years.