Markets reacted positively after US President Donald Trump signalled that the US naval blockade of Iran would be lifted, raising hopes that a formal peace agreement could be imminent and paving the way for a reopening of the Strait of Hormuz.
In a series of remarks ahead of a meeting in the White House Situation Room, Trump said the blockade “will now be lifted” and suggested that commercial vessels could begin preparing to resume normal operations.
The US president also reiterated demands that Iran relinquish control over the Strait of Hormuz and claimed that Tehran’s stockpile of enriched uranium would ultimately be removed and destroyed with the cooperation of the Iranian government.
The comments came as reports indicated US and Iranian negotiators had agreed a framework peace deal, although Trump stressed that a final decision on signing the agreement had yet to be made.
“I will be meeting now, in the Situation Room, to make a final determination,” Trump said.
The announcement appeared to accelerate the recent decline in oil prices, with investors increasingly pricing in the prospect of restored energy flows through one of the world’s most important shipping routes.
However, uncertainty remains over whether Iran has formally agreed to reopen the Strait of Hormuz or whether the US blockade has been officially lifted ahead of any final agreement.
Earlier on Friday, Iranian officials maintained a hard line on nuclear negotiations, with Tehran’s chief negotiator insisting the country’s enriched uranium stockpile would not be removed from Iran, highlighting one of the key obstacles that remains to securing a permanent peace settlement.
