Iran Offers to Reopen Strait of Hormuz in Seven Days for Diplomatic Resolution
Crude oil prices continued their downward trend on Tuesday, falling for a fifth consecutive session. Brent crude dipped below $100/bbl after reports emerged of an Iranian offer to reopen the Strait of Hormuz within seven days if the U.S. lifts its blockade.
Citing unnamed Iranian officials, Reuters and Japan's Kyodo news agency reported that the proposal had been conveyed to Washington through mediators.
'The U.S. needs to announce that it wants to resolve the issue diplomatically, make that official, and then agree on a timeline for how the process will move forward,' an Iranian official said.
The Strait of Hormuz is a critical waterway that connects the Persian Gulf to the Gulf of Oman, with a significant portion of global oil shipments passing through it. The blockade has led to a surge in oil prices.
Meanwhile, Saudi Arabia reportedly restarted operations at its damaged East-West pipeline and aims to resume exports via the pipeline later this week, albeit at a reduced volume, from the Yanbu port on the Red Sea.