U.S. President Donald Trump has expressed optimism that an agreement to reopen the Strait of Hormuz could be reached as early as Wednesday or Thursday, raising hopes of easing tensions in the Middle East and restoring normal global oil shipments.
Speaking to reporters while travelling in California on Tuesday evening, Trump responded to reports suggesting that an announcement on the strategic waterway could be imminent.
“It could happen. Tomorrow or the next day,” Trump said. “A lot of progress has been made.”
His remarks come as Iran and Oman continue negotiations aimed at reopening the Strait of Hormuz, one of the world’s most critical oil shipping routes. A breakthrough could pave the way for the resumption of unrestricted tanker traffic through the Persian Gulf and contribute to efforts to de-escalate the ongoing regional conflict.
Global oil markets reacted positively to the optimism surrounding the talks. Brent crude, the international oil benchmark, fell 1.2 per cent to $78.43 per barrel in early Wednesday trading as investors anticipated improved supply flows if an agreement is reached.
The Strait of Hormuz is a vital maritime corridor through which a significant share of the world’s oil exports passes, making any disruption to shipping in the area a major concern for global energy markets and the international economy.
