First tankers cross strait under Iran deal

Three Saudi-flagged supertankers carrying 6 million barrels of crude sailed through the Strait of ‌Hormuz on Thursday, hours after US President Donald Trump signed a deal with Iran to end the war that has disrupted global energy supplies.

Trump put his signature on Wednesday on the "memorandum of understanding" ‌to end the war, as did Iran's President Masoud Pezeshkian, bringing it into effect two days earlier than previously expected. It calls for the immediate opening of the Strait of Hormuz and lifting of a US blockade of Iran's ports.

Though shippers say it will still take time for transit across the strait to reach pre-war levels, with a need yet to ensure safe access and clear mines, there were immediate signs of an impact.

Ships which once might have ‌concealed their positions by switching off their transponders were now broadcasting their locations, poised to transit the strait.

Benchmark Brent crude futures prices fell by another 2% to below $78 a barrel, lowest since the shooting began.

The US-Iranian memorandum ⁠starts the clock on a 60-day negotiation period to reach a final settlement to the war, which Trump launched in February alongside Israeli Prime Minister Benjamin Netanyahu.

Reuters