Hormuz Deal Still Unsigned as Markets Bet on Peace
A deal to reopen the Strait of Hormuz remained unsigned on Wednesday, with the United States insisting an agreement was close but Iran still denying it was in direct talks. The secretary of state, Marco Rubio, said progress had been made but there was “no finality yet”, while President Trump threatened to hit Iran “really hard” if the strait did not reopen soon. Financial markets, however, bet on peace: shares hit records around the world and oil held near its recent lows.
The reported framework would allow safe passage through the strait for sixty days, with ships routed via an Iranian-controlled entry and an Omani-controlled exit, in return for lifting the American blockade of Iran’s ports — terms neither side has confirmed. The prospect of the world’s most important oil chokepoint reopening sent the S&P 500 and Asian markets to fresh highs and kept Brent crude around $80 a barrel, well below its wartime peak. Yet with no deal in hand and Mr Trump still brandishing the threat of a strike, the optimism could prove premature. Watch whether an agreement is actually signed, or the threats return.