The United States, Iran, and Oman are nearing an interim agreement that would temporarily reopen the Strait of Hormuz to commercial shipping, according to reports citing regional sources and a US official.
The deal, which is expected to be announced Wednesday, aims to de-escalate tensions in one of the world’s most critical energy chokepoints.
Markets have already begun to price in the potential de-escalation.
Asian equities extended gains early Wednesday, with Seoul shares rising as risk appetite improved on hopes of reduced shipping disruption.
Brent crude and tanker freight rates, which have been volatile amid fears of transit blockades, are likely to see downward pressure if the agreement holds.
The Strait of Hormuz handles roughly a fifth of global oil consumption, making its status a key driver for energy prices and global supply chains.