US President Donald Trump has stressed that respect from Tehran will determine whether peace holds following the conclusion of the Iran-Israel war. Speaking to reporters in the Oval Office on Monday, Trump expressed optimism that the full reopening of the Strait of Hormuz would trigger an oil boom.
Trump's Remarks on Respect and Peace
"As long as they respect us, I don't want to use the word fear because that's an inappropriate word, but as long as they respect us, we're not going to have any trouble," Trump said. The president's comments came as the vital shipping lane, effectively shut down by Iran after joint US-Israel strikes on 28 February, begins to see renewed activity. The closure had caused fuel prices to surge globally.
Interim Agreement and Strait Reopening
An interim agreement to halt hostilities and reopen the passage was reached, but the primary route remains blocked by mines. Despite this, dozens of vessels successfully transited the area over the weekend. Iranian parliamentary speaker and lead negotiator Mohammad Bagher Ghalibaf insisted on Monday that the Strait of Hormuz will be managed by Iran, in accordance with international laws. "Hopefully, we can activate the strait again, in terms of passage, and bring prosperity back to the regional and global economy," he told Iranian state media while en route from Switzerland.
Diplomatic Efforts and US Sanctions Waiver
Ghalibaf and Foreign Minister Abbas Araghchi arrived in Oman on Monday night for discussions with Omani Foreign Minister Badr al Busaidi regarding peace efforts and navigation security. As part of the interim deal, the US Treasury issued a 60-day license on Monday waiving sanctions on Iranian oil. Notably, the license permits Iranian oil imports into the US, a country that has not imported significant volumes of Iranian crude since the 1990s.
Transit Data and Market Reactions
Tanker activity in the strait is gradually increasing. Analytics firm Kpler recorded 71 confirmed transits over the weekend, with a peak of 35 crossings on Saturday, compared to the pre-war daily average of 100 to 130 vessels. To avoid the mined central channel, ships are using the narrower northern route through Iranian waters or the southern path through Omani waters. Market reactions saw Brent crude fall 3.2% to USD 77.52 per barrel, edging closer to pre-war levels of approximately USD 70. Benchmark US crude oil dropped 2.6% to USD 73.86 per barrel.
