Iran Proposes 7-Day Plan to Reopen Strait of Hormuz

A potential diplomatic breakthrough in the Iran-US conflict could reopen the Strait of Hormuz within seven days, according to Iranian Foreign Minister Abbas Araqchi. The Strait is a vital waterway for global oil markets, with roughly one-fifth of the world's supply passing through it.

Araqchi said that Tehran has presented Washington with a seven-day roadmap aimed at reopening the strait and moving towards negotiations. He stated that 'The choice now rests with the United States.'

The stakes are enormous, as traffic through the Strait has fallen dramatically during the conflict. Reuters reported that only two commodity vessels crossed the strait on one recent day, compared to about 125 large commercial vessels per day before the conflict intensified.

For Canada, however, the disruption continues to highlight the importance of having a secure alternative supply source. Middle East supply disruptions have forced Asian refiners to look farther afield for crude, with Canadian oil representing a key alternative. The expanded Trans Mountain system provides Western Canadian producers with approximately 890,000 barrels per day of pipeline capacity to the Pacific Coast.