Trump Signals Imminent Hormuz Transit Deal
Tehran and Muscat agreed Wednesday on shipping route coordinates through the Strait of Hormuz as draft terms move toward a final joint statement. Brent crude dropped 5% on hopes of restored tanker traffic, even as Houthi missile strikes in the Red Sea sank an Indian-flagged freighter.
Washington offering Tehran partial control over Hormuz shipping channels shows White House desperation to lower pump prices before midterms — even if Houthi Red Sea strikes continue.
Background The Strait of Hormuz carries 20% of global oil supplies through narrow shipping channels along Iran's coast. Months of military escalation between Washington and Tehran choked maritime traffic, threatening regional energy infrastructure and driving global inflation.
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Tehran foreign ministry spokesman Esmaeil Baghaei confirmed Wednesday that Iran and Oman agreed on shipping route coordinates through Hormuz, though Tehran cautioned that security depends on Washington ending its naval blockade.
Brent crude futures fell 5% below $79 a barrel as energy traders priced in restored tanker transits through the Persian Gulf, lifting U.S. stock indexes to record highs.
Iran-backed Houthi rebels sank an Indian-flagged cargo ship off Yemen and struck a Saudi crude tanker, demonstrating that Red Sea supply lines remain perilous regardless of Hormuz progress.
Pentagon inventory assessments confirmed the U.S. has exhausted nearly 80% of its THAAD interceptors and virtually all long-range precision missiles, constraining air defense reserves worldwide.
Saudi Crown Prince Mohammed bin Salman and Gulf leaders urged Washington to pause strikes, warning that continued bombardment risks retaliatory attacks against regional energy facilities.
Watch If Iran and Oman sign the transit protocol Thursday, crude markets will lock in lower energy prices — but any U.S. refusal to lift port blockades will restart strikes.
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