US President Donald Trump announced that while negotiations to end the ongoing war with Iran continue, the Iranian government has requested the reopening of the Strait of Hormuz.
This demand, coming amid two months of conflict that has severely disrupted global energy supplies, is being closely watched by markets and diplomatic circles.
Trump stated that he wants Iran to lift the naval blockade imposed by the US, adding that Tehran aims to open the waterway, which is critical for oil and natural gas shipments, “as soon as possible.” The US President also described Iran’s current situation as a “state of collapse” and claimed that there is uncertainty regarding leadership within the country.
The Washington administration has put forward a new proposal to end the war that began on February 28 with US and Israeli airstrikes against Iran. It is known that the US is trying to restrict Iranian oil revenues by blocking maritime traffic to Iranian ports, while Iran is largely keeping the Strait of Hormuz closed. Tehran has repeatedly stated that it will not open the strait unless the blockade is lifted.
According to sources close to the mediation process, Iran is expected to present a revised peace plan in the coming days. This plan could include a provisional agreement involving the reopening of the Strait of Hormuz in exchange for the US lifting its blockade. However, Washington is unlikely to accept Iran’s desire to partially maintain control over the strait.
On the other hand, the US administration claims that disagreements within Iran’s leadership structure are one of the reasons for the diplomatic impasse. US Secretary of State Marco Rubio stated that Iran’s offer was better than expected, but questioned whether the party making the offer had sufficient authority.
The impact of these developments is being felt sharply in energy markets. Brent crude oil prices rose above $111 per barrel, increasing by approximately 6% on a weekly basis. The prolonged negotiation process, increasing the likelihood of the Strait of Hormuz remaining closed, is intensifying pressure on prices.
The global impact of the war was not limited to prices alone. The United Arab Emirates announced its surprise withdrawal from OPEC. This move is considered a significant blow to both the cartel and its leader, Saudi Arabia. UAE Energy Minister Suhail Al Mazrouei stated that the market was already tight in terms of supply and that more flexibility was needed under the current circumstances.
*This is not investment advice.