Iran, Tehran and Strait of Hormuz
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16hon MSN
U.S. oil price hits $80 as doubt grows Washington and Tehran will reach Strait of Hormuz deal
Oil rose as traders assess mixed signals from the U.S. and Iran amid worries that a deal to open the Strait of Hormuz may not be coming anytime soon.
US president Donald Trump had been preparing to declare victory in the war with Iran if Tehran agreed to fully reopen the Strait of Hormuz. He had also privately signalled to senior aides that he was willing to walk away without securing a nuclear deal,
"Iran has turned the Strait of Hormuz into a source of revenue, and it is waging war to keep collecting," writes Bobby Ghosh.
September rate-hike chances have fallen, but a hot inflation print or renewed disruption in the Strait of Hormuz could put them back in play.
The United States paused attacks on Iran for a second straight day Sunday and Tehran said it had done so too, as efforts continued to bring the countries back to negotiations on an interim ceasefire.
By expanding the arena of fighting in the region, experts say, Tehran sent a warning about the dangers of a widening war.
Tehran has announced that Iran and Oman have agreed on the geographic route for shipping through the Strait of Hormuz, claiming that the US was not involved in the agreement. At the same time, the US President has claimed Hormuz negotiations with Iran are “moving along very nicely”.
Iraq signed $100 billion in U.S. energy deals with Chevron and ExxonMobil. But Washington is forcing Baghdad to balance ties with Iran and China.
Iran has said it is not seeking to resume peace talks with the U.S., although it would pause its own attacks for as long as Trump's self-imposed ceasefire continues.
After three difficult years, armed groups loyal to Tehran appear to be bouncing back across the Middle East, reinforcing Iran’s leverage in its war with the United States and Israel.
US President Donald Trump has reportedly signalled to senior aides that he is willing to end the Iran war without securing a nuclear deal with Tehran. But Iran's new demands for reopening the Strait of Hormuz have complicated the US president's efforts to find an exit from the conflict,