Strait of Hormuz Reopening Discussed in Iran-U.S. Talks, Official Says

A senior Iranian official provided details to Reuters on Tuesday's indirect negotiations with the United States.

• Talks covered reopening the Strait of Hormuz and ending the U.S. blockade.
• Iran's main objectives are a permanent cessation of hostilities and the removal of the U.S. naval blockade.
• Numerous disagreements persist between the Iranian and American positions, yet diplomatic efforts are ongoing.

U.S. Secretary of State Rubio, meanwhile, described Tuesday's talks on Iran as primarily a swapping of ideas and messages.

Analysis: For traders, the key term is 'discussed.' While reopening Hormuz is under consideration, the statements do not indicate that an accord was achieved. Iran is further linking its objectives to a permanent end to conflict and an end to the blockade.

Regarding oil, the upcoming issue is whether the discussions yield a tangible measure enabling vessel traffic via the strait to restart. Unless that happens, the threat of ongoing interruption persists.

At $92.28 for the day, the current trading level is $91.40. This is still higher by around $0.90 on the session. The intraday low was $88.71.