Trump Says Strait of Hormuz Will Fully Reopen Soon
Summary
- President Donald Trump said the Strait of Hormuz will fully reopen soon.
- Markets see a reopening of the strait as a step that could ease uncertainty over global oil supply.
- The possibility of a blockade during the recent Middle East conflict heightened volatility in international oil prices and financial markets.
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President Donald Trump said the Strait of Hormuz will fully reopen soon.
Walter Bloomberg reported on June 17 that Trump expressed optimism about progress toward an agreement between the US and Iran, saying the strait would be fully reopened soon.
The two sides had previously been reported to be close to a basic agreement to restore normal traffic through the Strait of Hormuz and continue negotiations over the nuclear issue. After a signing, they plan to hold about 60 days of follow-up talks aimed at reaching a final deal.
The Strait of Hormuz is a key energy shipping route through which a substantial share of global seaborne oil cargo passes. The possibility of a blockade during the recent Middle East conflict had heightened volatility in international oil prices and financial markets.
Markets view a reopening of the strait as a move that could ease uncertainty over global oil supply and help reduce tensions in the Middle East.
