Overview
- A preliminary memorandum of understanding reported Wednesday between Washington and Tehran commits both sides to steps aimed at ending hostilities and reopening the Strait of Hormuz.
- Global oil prices fell sharply on the news with Brent trading below $75 per barrel as investors priced in a possible surge in supply.
- Analysis firm Kpler and other sources report a partial recovery in crossings and the U.S. granted a 60‑day oil sanctions exemption that helped restart some traffic.
- Practical barriers remain: Iran has mined the central channel and demining is required, insurers and ship operators are withholding full confidence, and U.S. naval escorts are still used on some routes.
- Political and legal disputes persist because Iran’s parliamentary speaker said Iran will administer the strait while U.S. officials insist on free navigation under international law, leaving the pace of full normalization uncertain and shaping forecasts from the IEA and major banks.