Trump says ships 'starting to move' through Strait of Hormuz

The Development in the Strait of Hormuz

US President Donald Trump announced on Monday that ships are starting to move through the Strait of Hormuz, a crucial waterway for international oil shipments, following an agreement between the US and Iran.

Details of the Agreement

The US and Iran have agreed to sign a Memorandum of Understanding aimed at ending the conflict. While no official text has been released, both sides have indicated that the initial deal includes reopening the Strait of Hormuz, lifting the US naval blockade on Iranian ports, and halting fighting on all fronts.

The Impact on Shipping and Oil Markets

International oil markets have rebounded following the positive signals towards a deal. However, it is expected to take months for operations to return to normal if the strait were to be fully reopened. About 500 ships are waiting to pass through the strait, with around 20,000 stranded crew members.

Challenges and Future Negotiations

More entrenched issues, such as Iran's nuclear program, its support for proxies in the region, the unfreezing of Iranian assets, and the lifting of sanctions, are expected to be addressed during a 60-day negotiation period. The issue of de-mining efforts will be discussed during the G7 Summit.

The Future of the Strait of Hormuz

There are still unanswered questions about the plan to open the strait and its future administration. Experts have warned that the conflict has reinforced the strait's significance as a key point of leverage for Iran. The US and Iran are expected to discuss technical details, including whether the passage will be toll-free.