Hormuz Draft Agreement Reportedly Awaits Khamenei Approval
Oil markets are awaiting a decision from Iran’s supreme leader after Iranian and Omani negotiators reportedly completed a draft agreement that could reopen the Strait of Hormuz, the main export route for Persian Gulf oil and LNG. Two regional officials briefed on the talks told the Associated Press
Source: OilPrice.com
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DW NOTE
A draft agreement means nothing until Khamenei signs it. The June accord reopened the Strait for eighteen days before Iran let it collapse again — 513 ships transited, then traffic fell to two per day by August. The strait has been effectively closed since February, choking off 20 million barrels per day. Tehran has learned it can extract concessions, pocket them, and resume the blockade whenever the terms sour. Oil is pricing this in: WTI is down 33% from recent highs despite the supply shock.