Iran and Oman drafting protocol to ‘monitor’ Hormuz Strait traffic: IRNA

Iran and Oman are preparing a protocol for “monitoring transit” in the Strait of Hormuz, Iranian state news agency IRNA reported Thursday morning, citing an official.

Iran’s deputy foreign minister for law and international relations, Kazem Garibabadi, said tanker traffic on the key oil shipping route “must be supervised and coordinated” with the two countries, according to a translation of IRNA’s report.

Gharibabadi said, “Of course, these requirements will not mean restrictions, but rather facilitate and ensure safe passage and provide better service to ships passing through this route.” he said.

US stock indices, which were trading with a sharp decline on Thursday morning after President Donald Trump signaled that the Iran war will continue in the coming weeks, suddenly rose after IRNA’s report.

Oil prices, which rose overnight, also fell from the highest levels of the day following news from Oman that gave hope that the Strait of Hormuz could be reopened to some extent without the need for military force.

The strait, a vital artery for much of the world’s oil transit, has been effectively closed since the war began on February 28 with US and Israeli strikes on Iran.

The blockade of Iran quickly led to a historic rise in oil prices, creating a cascading crisis with widespread effects around the world.

Trump insists that the United States is not affected by the closure because it imports relatively little oil through the strait. “We didn’t need this and we don’t need it,” he said in his address to the nation on Wednesday night.

But average U.S. gas prices still rose more than 30% in a month, topping $4 per gallon for the first time in years.