Fars News refutes claims of Iran reopening Strait of Hormuz

Earlier in the trading session, oil prices declined on reports that Iran and the US might negotiate and that the Strait of Hormuz could reopen. However, Iranian sources quoted by Fars News have now denied those claims.

Earlier, Kyodo and Reuters, citing Iranian sources, reported that Tehran might be willing to reopen the Strait of Hormuz in seven days, contingent on the US easing military pressure and ending its blockade of Iranian ports. These reports deepened oil's slide as investors factored in a potential gradual return to normal crude shipments.

But sources cited by Fars News described the reports as inaccurate, stating that they did not represent Tehran's stance. The contradictory accounts emerge at a time when markets are extremely responsive to any signs of progress in US-Iran de-escalation efforts before the UN General Assembly.

After the Fars News report, oil prices recovered some of their earlier declines, though the upward momentum was weak. This could indicate that the market continues to see a higher probability of de-escalation, considering the limitations Trump faces—including munitions shortfalls, elevated yields, interest rate increases, declining political approval, and pressure from Gulf states to end the conflict.