This ties back to the earlier headline, where Araghchi spoke about “important discussions” with Oman on the Strait of Hormuz. He now says that Iran and Oman have agreed to “continue consultations on the strait with expert-level talks”. This ties to the earlier headline that Iran is perhaps trying to work out a proposal for safe transit of the waterway.
While the headline sounds positive and may mark a break of the hard line that Iran has been holding, it is best to be reminded that Tehran officials will not give away too much leverage over the situation. As a reminder, their ace card is control over the Strait of Hormuz. And to give that up before any agreement on the nuclear agenda would be wishful thinking.
If anything else, expect any “reopening” of the strait to be very limited in nature. In other words, it is a bit part concession that Iran wants to offer up in exchange for the US breaking its naval blockade. It isn’t to say that Iran is giving up control of the strait entirely. So, keep that in mind.
Risk trades are still taking a more positive cue from the latest development though. S&P 500 futures are now up 0.1% after dropping by around 0.3% earlier in the day. Meanwhile, WTI crude has also eased a touch from a high of $96.68 at the start of the day to $95.35 currently.
