US-Iran Talks Revive Hormuz Reopening Hopes

The US and Iran have resumed talks to reopen the Strait of Hormuz, which could ease some pressure on Treasury yields and lower oil prices. Iranian Foreign Minister Abbas Araghchi said Tehran has proposed a seven-day plan for Washington to stop hostilities before reopening the strait.

The proposal includes an end to hostilities in Lebanon, release of $12 billion in frozen Iranian assets, sanctions waivers for Iranian oil, and lifting of the US naval blockade. If these conditions are met, Iran would reopen the strait at the end of the seventh day.

Markets have shown some sensitivity to the possibility of progress. WTI crude fell more than 2.5% to around $89 a barrel on Sept 22 after Iran signaled that Hormuz could reopen within a week.