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Iran to Allow Free Passage Through Strait of Hormuz for 60 Days, Easing Oil Market Fears
Summary
- Iran said it will allow ships passing through the Strait of Hormuz to move freely for 60 days.
- The move could ease concerns over oil supply disruptions and inflation pressure from a surge in crude prices.
- That could support risk appetite across the oil market, global stock markets and the crypto market.
Iran will allow ships to pass freely through the Strait of Hormuz for 60 days under an agreement. The move could ease fears of disruption along one of the Middle East’s most critical shipping lanes and support sentiment in crude markets and other risk assets.
BlockBeats, a crypto-focused media outlet, reported on June 15, citing Iran’s Fars News Agency, that Tehran plans to permit free navigation for vessels transiting the Strait of Hormuz for 60 days under the agreement.
The Strait of Hormuz is a key shipping route for crude oil and liquefied natural gas from the Middle East. As tensions between the US and Iran intensified, markets had treated the possibility of a closure or curbs on traffic through the waterway as a major risk.
If carried out, the measure could reduce concerns about oil supply disruptions. It may also ease inflation pressure tied to a spike in crude prices. Recent declines in international oil prices, along with rebounds in global stocks and crypto markets, have also been interpreted in that context as expectations for a peace agreement between the US and Iran gained traction.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
