A US official says progress is being made between Oman and Iran over the Strait of Hormuz, with Washington expecting an agreement soon.
The official added that once a deal is announced allowing commercial shipping to resume without obstacles, the US will lift its blockade of Iranian ports.
A breakthrough could significantly reduce concerns over disruption to one of the world’s most important energy shipping routes and ease the geopolitical risk premium across markets.
WHY: Restoring unrestricted commercial shipping through Hormuz would reduce immediate energy-supply risks and could trigger a sharp repricing of geopolitical risk.
DESK: Oil-negative, Gold-negative, risk-positive; watch for confirmation of a formal agreement