US and Iran Explore Phased Deal to Reopen Strategic Shipping Route

Oil prices retreated on Friday as news emerged that the US and Iran are exploring a phased deal to reopen the Strait of Hormuz within seven days. The development came after reports of Washington's acceptance of Tehran's conditions, which include lifting its economic blockade in exchange for Iran resuming free passage through the strategic shipping route.

The Strait of Hormuz has become a central point in negotiations between the two nations, with both sides trying to reach a lasting agreement. According to Iranian Foreign Minister Abbas Araghchi, Iran is not seeking new terms and its conditions are already contained in an earlier memorandum of understanding signed by the US president.

A senior Iranian official stated that a phased arrangement would be the most plausible route out of the impasse, starting with an end to the US blockade and reopening of Hormuz. This could potentially lead to Iran gaining access to frozen assets as part of the broader agreement.

The possibility of reopening Hormuz has provided some relief to oil markets after prices surged this week due to fears of continued disruption of the route, which could further tighten global crude supplies.