A temporary agreement between the US and Iran reduces immediate threats to oil transit through the Strait of Hormuz but leaves future fees unresolved.
A 60-day memorandum of understanding between the US and Iran has eased near-term risks to global oil flows by keeping the Strait of Hormuz open. The deal, now in effect, follows both sides demonstrating good faith, though ship crossings remain limited despite the US ending its naval blockade ahead of schedule.
The agreement only guarantees safe passage for 60 days, after which Iran may introduce maritime fees to cover strait management costs. President Trump has opposed any tolls, leaving future transit costs and geopolitical tensions unresolved. Prior to the deal, heightened risks had contributed to market volatility and influenced central bank policy decisions.
The temporary reduction in risk has provided short-term relief for markets, with the Bank of England holding rates steady in its latest decision. However, uncertainty persists beyond the negotiating window.