Hormuz Deal Could Bring Oil Prices Down to $75-80 Barrel
Crude oil prices plummeted by 11% in two days following reports of an impending agreement to unblock the Strait of Hormuz. The US, Iran, and Oman are close to concluding a temporary deal that would allow for the safe passage of ships through the strait, taking into account some of Iran's demands.
The proposed agreement includes a 60-day interim agreement between Oman and Iran, with incoming vessels using the northern corridor through Iranian waters and outgoing vessels using the southern corridor through Omani waters. No tolls or fees will be charged for 60 days, and the middle lane is expected to be cleared within 30 days.
US President Trump has stated that the US is ready to launch its 'biggest attack' on Iran since World War II, but Iran has invited talks. Trump believes the Strait of Hormuz will open 'very soon,' or else Iran will face severe consequences.