Iran is ready to reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade on Iranian ports. This was reported by Qazaqyia.kz citing The Guardian.
A senior Iranian official told the Reuters news agency about this. There is no more immediate detail on how exactly this reopening would work in practice and the US hasn't commented on the report, which the outlet has not been able to independently verify.
The official also told Reuters that the Iranian delegation to the UN General Assembly has full authority to revive diplomacy with US officials.
Visible traffic through the Strait of Hormuz has dwindled to a trickle, but some tankers are continuing exporting oil by travelling with their transponders off to avoid detection.
A total of 17 commodity vessels transited the strait over the weekend, down from 37 a week earlier, shipping data showed on Monday. Before the war, an estimated 120 vessels crossed the strait each day.
Despite the reduction in journeys through the strategic waterway, oil prices fell for a fourth consecutive session yesterday amid fresh prospects for renewed diplomacy.
As mentioned earlier in the blog, Tehran and Washington exchanged threats on Sunday, although the US president, Donald Trump, said he probably would be open to meeting his Iranian counterpart, Masoud Pezeshkian, who is travelling to New York for the UN meeting.
Among Iran's previous conditions to reopen the strait included an end to the war on "all fronts" – referring to Israel's assault on Lebanon – and the release of frozen funds.
This situation once again demonstrates the strategic importance of the Strait of Hormuz for the global oil market. The sharp reduction in the number of vessels passing through the strait could affect international trade and energy security. The statement from the Iranian side may help reduce diplomatic tensions, however there is no concrete response from the US yet.
The Strait of Hormuz is a narrow waterway connecting the Persian Gulf and the Gulf of Oman. It is considered one of the world's most important oil transportation routes. Restricted shipping in the strait directly affects oil prices. Yesterday's price decline reflects the market's hopes for diplomatic renewal.
The Iranian delegation's full authority at the UN General Assembly indicates the possibility of keeping the diplomatic channel open. How relations between Tehran and Washington will develop further is important for the international community.
The US president's statement about openness to meeting his Iranian counterpart increases hope for a diplomatic solution. However, the start and outcome of concrete negotiations remain unknown.
Further developments in the Strait of Hormuz will directly affect the oil market and regional security. Iran's statement about readiness to reopen the strait within seven days could be a first step toward reducing diplomatic tensions.