Oil prices slid on hopes that the US-Iran agreement could lead to the reopening of the Strait of Hormuz even as analysts warned that oil flows may recover only slowly and remain vulnerable to renewed disruption.
Donald Trump said on Sunday that an agreement had been reached to gradually reopen the strategic waterway. For that to happen, Iran must demine the waterway and refrain from charging any tolls and the US must lift the naval blockade it imposed on ships moving in and out of Iranian ports.
“I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines,” the US president said on social media. “Let the oil flow!”