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Tehran and Washington have reached preliminary understandings on the Strait of Hormuz.
Al Arabiya reports that Tehran and Washington have reached preliminary understandings on easing the blockade on Iran in exchange for a gradual reopening of the Strait of Hormuz. In the coming hours, the sides may also agree on a solution for the vessels currently stranded in the strait.
For the market, this is a strong de-escalation signal. If transit through Hormuz starts moving back toward normal, pressure on oil and the whole geopolitical risk premium of recent weeks could fall fast.
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