US to lift naval blockade in exchange for Iran reopening Strait
The US and Iran are nearing a deal to reopen the Strait of Hormuz, with a memorandum of understanding potentially being signed as soon as Sunday.
The proposed deal would see the US lift its naval blockade around Iran in exchange for Iran restoring shipping conditions to pre-war levels within 30 days.
This would remove a major supply-side threat to global energy markets and influence inflation expectations, rate hike pricing, and growth outlooks.
The reopening of the Strait would likely lead to a reduction in oil prices and inflation fears, potentially impacting the Federal Reserve’s decision on interest rates.