Since the February 28 US and Israeli strikes on Iran, the Strait of Hormuz has been effectively closed
US stocks rebounded from early morning losses, and surging oil prices began to ease on the hopes that a potential coordination between Iran and Oman could reopen the Strait of Hormuz.
Iran’s state media reported on Thursday that Iran and Oman are drafting a protocol to “monitor transit” through the strait.
The agreement could “facilitate and ensure safe passage and provide better services to ships that pass through this route,” said Iran’s deputy foreign minister Kazem Gharibabadi.
Since the US and Israel began their strikes on Iran on February 28, the strait has been effectively closed. It has affected global energy markets, including the US, where gasoline prices surged past $4 per gallon. Meanwhile, President Donald Trump has maintained that America is not dependent on the route.
Despite sustaining severe leadership losses and repeated strikes on its military infrastructure, Iran is gaining from the war, per the Financial Times. It is reportedly charging $2 million per ship for safe passage through the strait.