US President Donald Trump stated on Thursday that the Strait of Hormuz, a critical maritime chokepoint closed by Iran since the onset of hostilities, could be reopened "soon." The comment follows reports that Iran announced an agreement with the Sultanate of Oman on Wednesday to facilitate a new transit route through the waterway.
The potential restoration of shipping lanes marks a significant shift in the geopolitical landscape surrounding the Gulf.
Trump’s remarks suggest a de-escalation in tensions that have disrupted global energy flows for months.
The US President previously issued a stark ultimatum regarding the waterway, warning of severe consequences if navigation was not restored promptly.
Markets are likely to react to the prospect of reduced shipping risk.
Brent crude prices, which have been volatile due to supply concerns linked to the closure, may see downward pressure as traders price in a return to normalcy.