Iran has offered to open the Strait of Hormuz within seven days if the United States eases its pressure including taking steps toward ending the U.S. military blockade of Iranian ports and halting military operations in the Strait, a senior Iranian government official told Japan’s news agency Kyodo News on Tuesday.
Hopes of a diplomatic breakthrough and Iran’s reported preparedness to reopen the Strait of Hormuz if the U.S. takes steps to ease the pressure sent oil prices tumbling by 3% early on Tuesday.
The international benchmark, Brent Crude, slipped below the $100 per barrel mark for the first time in a week, and was trading at $98 a barrel as of publication.
The U.S. benchmark, WTI Crude, fell to $91 per barrel.
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Iran’s proposal has been conveyed to the U.S., the official told Kyodo News today, adding that it includes resumption of talks aimed at permanently ending the hostilities.
Iran will consult with the intermediaries during the UN General Assembly gathering in New York this week.
However, there won’t be any direct meeting between U.S. President Donald Trump and Iranian President Masoud Pezeshkian, as some reports have suggested in the past days, the official told the Japanese news agency.
“There is a possibility of moving toward an agreement,” the Iranian official said, but noted that the United States should show “seriousness and commitment” if the diplomatic push is to progress.
If the U.S. were to take steps toward ending the blockade, which has been crippling Iranian oil exports, Iran would be prepared to reopen the Strait of Hormuz within seven days, the official said.
This weekend, Iran’s Supreme National Security Council Secretary, Mohsen Rezaei, has communicated seven key conditions for Iran to return to negotiations. These conditions include the end of the U.S. blockade and the release of frozen Iranian assets.
By Charles Kennedy for Oilprice.com
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